SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date 17th August, 1948
No. 65.
R.
British Embassy
NANKING (NO. 37. )
32
British Consulate-General CNTON (No. 5.) Commissioner General,
S.E.A. Ne: 221.
G.O.C., HONG KONG.
SECRET
Following is a Political Report for Hong Kong for
the two weeks ending 9th August 1948.
}
The activities of Chinese political dissidents in Hong Kong are increasing. On August 7th the press prominently reported that Marshal FENG Yu-Hsiang( was returning to China from the U.S. to direct the anti- Chiang Kai-Shek movement. It appears that General Feng is actually on his way to Hong Kong. Should he arrive here he will be informed that if he engages in any activities which might embarrass Hong Kong's relations with China such activities will not be tolerated. Marshal LI Chai sum's K..T. Revolutionary Committee (of which Feng Yu- Hsiang is a member), the China Democratic League and other Democratic factions in Hong Kong have now shown their clear intention to collaborate with the Chinese Communists in order to set up a coalition government. It will be recalled that early in May Marshal Li and other dissident leaders sent a telegram to MAO Tse Tung (
) sup- porting the latter's proposal for a meeting of a Political Consultative Council to discuss the establishment of a coalition government. Mao Tse Tung replied on August 1st welcoming their support and stating that he was awaiting further advice from the Democratic elements in Hong Kong as regards when and where such a meeting would be held and who should take part in it. Any attempt to hold such a meeting in Hong Kong would certainly provoke a strong protest from the Chinese Government, and would be opposed by this Government.
2.
While the Communist and the dissident elements in Hong Kong show signs of increasing optimism regarding the early collapse of the Narking Government, Communists are showing increasing nervousness lest action may be taken against their growing network of organisations in Hong Kong
3.
The Chinese press continues to show interest in the peace rumours emanating from Peking, but belief in the genuineness of these rumours is waning. The currency inflation in China continues to receive the main attention and the press is thick with rumours regarding a new currency, or at least a new currency for the South in the areas under Dr. T.V.Soong. The latter's visit to Nanking on August 4th has led to a spate of rumours that he would perhaps re-enter the Government as President of the Executive Yuan. The names of Generals YU Han-Mou(
) and WU Teh-Cher
(
4.
) have been mentioned as his possible successor.
The illfounded and malicious press campaión in China against ong Kong, blaming Hong kong for China's economic ills, has somewhat died down, and even the local Chinese press has continued to rally to the support of the Hong Kong view-point, namely, that fundamental measures to control China's economics and finances must be taken in China herself, and Hong Kong can merely assist in a complementary capacity.
5./