2
dealings in Chinese currency except through banks authorised to deal in foreign exchange, have received an encouragingly good press from the Chinese. The general tone has been one of praise and only a few discordant notes have been sounded by papers which criticise the order on the grounds that it lacks "teeth" to enforce it. The K.M. 7. controlled press have all shown approval. Hong Kong's cooperation, however, is unable to offset the damage done to the Chinese economy and to the public confidence in the new Gold Yuan currency by the continued Civil War. The loss of Tsinan to the Communists has in particular struck a severe blow against the new currency, which is starting to depreciate in the local black market.
5.
The
The Hong Kong representative of the Central Bank of China has stated in an interview given to the Hong Kong press that the Chinese Government intend to carry out registration of foreign currency assets held by Chinese abroad, and that a start would be made in Hong Kong. Central Bank representative has been criticised by the press, including Chinese newspapers, for his tactlessness in thus broaching the matter publicly before the Hong Kong Government had been approached.
6.
The Chinese overnment have also, it seeLIS, the intention to open an office of the Chinese Overseas Affairs Commission in Hong Kong. This is a Chinese Fovernment department. Here again the first intimation was received through reports in the press. The office of the Chinese Special Commissioner for Foreign Affairs in Hong Kong has admitted the truth of the report, and it has been pointed out to them that such an office is not considered desirable or necessary by this Government. It is believed that an official approach may be made by the Chinese Government in due course, the ostcnsible excuse for the establishment of such an office being the need to look after overseas Chinese arriving in Hong Kong, where it is alleged, without proper advice and guidance, they would be at the mercy of sharks and impostors who would trade on their ignorance of Hong Kong and China.
! 7
Soon after the end of the war the Chinese Government Telegraph Administration were allowed on a purely temporary basis to operate a receiving counter for telegrams in the Colony and to transmit and receive telegrams to and from China, subject to subsequent agreement on the conditions under which they could be allowed to operate on a permanent basis. The conditions they were required to accept were ba ed on those which were imposed by the Chinese overnment on Cable and Wireless in 1933. Six months ago it became clear that the C... A. would not accept conditions on this reciprocal basis and they were cocordingly given notice that their receiving counter must be closed down. The counter was in fact closed down at the end of September. Although the C.4.7.A. have no rights in the Colony by treaty or agreement it is not impossible that they may attempt to work up indignation about closure of their office and there have been signs in the Canton Press that this is in fact beginning.
CHAN 15/20
Page 35Page 36