1170/475
r
SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date
6th
No. 62.
August, 1948.
SECRET.
(R; British Consul General,
30
CANTON (NO. 52. } British Embassy
NANKING (No. 36.
Commr General,
•
}
SINGAPORE (No. 215.)
G.O.C. HONGKONG.
X
17 AUG 1948
RECEIVED
C.O.
LEGY,
г
The following is a Political Report for Hong Kong for the
two weeks ending July 26th, 1948:-
1.
The "anti-bandit" (or "anti-Communist") drive being conducted by the Kwangtung authorities on the other side of the border got off to a disastrous start, when 300 or so armed Communists attacked Chinese National forces at Shayuchung on Mirs Bay. The Chinese National forces suffered a considerable reverse and as a result five Chinese Customs sub-stations and twenty Customs out-posts have been evacuated from Mirs Bay, and for a few days it was rumoured that an attack would be made on Shataukok on the Hong Kong/China border. The K.M.T. controlled press even suggested that the Communists would attack Un Long in British Terri- tory, but this suggestion was ridiculed by the leftist Hwa Shiang Pa which said "it is well known that the main object of the Democratic Revo- lution of the Chinese people is to oppose American imperialism, feudalism and the dictatorial regime of Nanking"
2.
The banning of the Malayan Communist Party and other organi- sations in Malaya has been welcomed by the K.M.T. press and received in silence by the leftist press. The K.M.T. "National Times considers that the activities of "Communist bandits" across the border, who are alleged to obtain their arms and supplies from the Colony, taken in con- junction with events in Malaya, show the need for strong action to be taken against the Communists in the Colony. I The National Times” even suggested that certain Chinese organisations and public bodies in Hong Kong should set up a joint "defence scheme which might help the Hong Kong Government in time of emergency. ¡As a precaution against Chinese Communists who may be coming to Hong Kong from Malaya restrictions have now been enforced on Chinese passengers arriving in Hong Kong from Malaya and the East Indies. They are all required to produce valid passports or travelling permits before being allowed to disembark, This does not apply to Chinese arriving from China and Macao, and is not a new regulation, being merely the enforcement of a regulation already on the statute book.]
3.
The Chinese press in Hong Kong on the whole seems to be satis- fied that the acrimonious criticisms regarding Hong Kong's alleged failure to enforce the anti-smuggling and financial agreements entered into with China have little justification. The statements put out by the Superin- tendent of Imports and Exports in Hong Kong and the interview recently given to a United Press reporter by H.M. Ambassador in Nanking thus seem to have had a salutory effect. Most Chinese here realise that smuggling must be stopped by China herself and that Hong Kong can merely render some assistance. One paper also points out that as regards rampant smuggling activities, Macao is really the headquarters, as is evidenced by the heavy demands for Macao currency, the value of which in relation to Hong Kong dollars has risen. The Chinese Government apparently would like further negotiations with Hong Kong on measures to prevent smuggling and to control the flight of capital, but, according to a Shanghai report dated 23rd July appearing in a Canton newspaper, the Chinese Government will put a ban on imports from Hong Kong if new negotiations result in failure. In other words, the Chinese are still threatening a blockade of Hong Kong.
4.
The dissident Chinese political parties represented in Hong Kong remain fairly quiet. The China Democratic League held a memorial service on July 15th in memory of some of their members who had been killed in China for political reasons. From some of the speeches which were made it is evident that political exiles in Hong Kong are hoping for a big poli- tical change in China shortly.
Chrbts ww!)