40

[This telegram is of particular secrecy and should be retained by the authorised recipient and not passed on]

Cypher/OTP.

POLITICAL DISTRIBUTION

FROM NANKING TO FOREIGN OFFICE

Sir R. Stevenson, No.58.

17th January, 1948.

Repeated as usual.

IMPORTANT.

SECRET.

LIGHT.

D. 9.40 2. m. 17th January, 1948,

R. 10.50 a. m. 17th January, 1948,

Addressed to Foreign Office telegram No.58 of 17th January, repeated as usual.

Weekly summary 3.

In Manchuria, there has been no appreciable change in political situation but economic difficulties in Mukden remain acute. Large number of surplus officials are being evacuated.

In Hopei nationalists have been hopeful of success in clearing flanks of Peking-Paoting Railway. Communist attacks near Tientsin have had the same object in recent attacks near Mukden, namely the discomforture of civilian population. In Chansi some unexpected activity by nationalists has temporarily enlarged the perime ter round Taiyuan,

2. Following the murder by bandits of three missionaries in Hupei, missionaries organisations are arranging to withdraw workers from a wide area north of the Yangtze,

3. Agitation worked up over the Kowloon city case by irresponsible elements in the Kuomintang and not (repeat not) discouraged by the Chinese Government, culminated in a serious riot at Canton on January 16th. Large crowd forced their way into the former British Concession and destroyed by fire all British Consulate property also several British business offices. Fortunately there were no serious casualties. Order seems now to have been restored. The Chinese Government has expressed deep regret at what the Government press claims to be the work of subversive elements. Instructions have been issued by the Chinese Government to the competent authorities throughout China to protect British lives and property and to punish rioters.

Foreign Office please pass to Washington, Moscow and New Delhi as my telegrams 4, 4 and 3 respectively.

[Repeated to Washington and Moscow.

Not repeated to New Delhi].

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