-3-
British line. In the matter of holding elections in Hong Kong for the Chinese National Assembly, the Kuomintang did not appear to take a prominent part, since responsibility for organising elections was entrusted to a Committee of which the Chairman of the Chinese Chamber of Commerce was asked to be president, but as a matter of fact it was the Kuomintang behind the scenes which made the necessary preparations. In the event, as a result of objections by His Majesty's Government, the idea of holding elections in Hong Kong and in other British territories was dropped. No representative from Hong Kong has gone to the Chinese National Assembly, although it appears that a representative from Macao was elected from among the Chinese in Macao, the actual voting taking place just over the China/ Macao border.
9.
In labour matters, the Labour Welfare Committee of the local Kuomintang branch has continued its attempts to infuse Kuomintang influence into local labour unions. Such influence is strongest in the Chinese Seamen's Union, the Inland River Steamers Union and the Chap Yin Stevedores Union. These three unions virtually hold the shipping business of the Colony in their hands because of the difficulties they can put in the way
There is also a of shipowners when their vessels are in Chinese ports. Hong Kong Seamen's Union which is Left Wing in sympathy. This Union is struggling hard to attain recognition by shipping companies who would be pleased to deal with it if it were not for the fear of repercussions in Shanghai and other Chinese ports. The influence of the Kuomintang in unions is thus far-reaching, but in practice it is off-set by the almost solid support given by the utility and dockyard unions to the Left Wing point of view. The cleavage between the two sides is likely to be consi- derably emphasized in the future as a result of the enactment of the Trade Unions Ordinance. Two Federations of Trade Unions are being formed on a Chinese party politics basis; there is no hope of any cooperation between these Federations. Kuomintang influence in Hong Kong labour does not so far appear to have been exercised nefariously, and there is no evidence of Kuomintang support in any strikes. The main immediate object of Kuomintang control of trade unions is to rally support behind the Nanking Government.
10.
In industry and commerce, the Kuomintang is strong in the Hong Kong branch of the Chinese Manufacturers' Association, which is headed The in China by Mo Hing Cheung, brother-in-law of General Chiang Kai Shek. Hong Kong branch is closely allied with the Chinese Chamber of Commerce, which traditionally supports the Nanking Government. Kuomintang influence in this body is fairly strong at present.
11.
The Kuomintang exercises strong control, to a large extent by indirect means, over the Chinese Press in Hong Kong. Some of the leading papers circulate in Canton and they can often be brought to heel by a threat to ban them in that city. Recent regulations issued in Canton make it necessary for newspapers to declare their political affiliations. newspapers are also made to fall into line by threats of bringing pressure to bear on advertisers. It is satisfactory to note that the Wah Kiu Yat Po, to which reference was made in paragraph 12 of the memorandum enclosed with
Chinese
(24) on '46 file my predecessor's confidential despatch of 28th November, 1946, has now
Mv)
succeeded in throwing off the control which the Kuomintang had managed to impose upon it through the appointment of Kuomintang personnel to the staff of the newspaper. A recent new approach was made by the Canton Municipal Kuomintang to the newspaper indicating that it wished to take over control again, but the proprietor firmly rejected these overtures and it may truthfully be said On the other hand, it must be that the paper has regained its independence. admitted that the newspaper with the second largest circulation in the Colony, namely the Sing Tao Yat Po, has now completely fallen under the domination of the Kuomintang. The "National Times", the official Kuomintang organ in Hong Kong, is an exceptionally undesirable paper and its attitude at the time of the Kowloon City incident was notorious. Recently, it has been more
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