1/70/475
SAVINGRAM
28
To
Secretary of State for the Colonies
From the Governor, Hong Kong.
Date 28th July 1948.
No. 60 Secret.
(R. British Consul General,
CANTON. (No. S/. )
British Embassy, NANKING. (No. 35. ) Comm. General, SINGAPORE. (No.209)
G.O.C. HONGKONG
Following is a political report for Hong Kong for the two weeks ending July 12th 1948.
1.
The Nanking campaign of criticism of Hong Kong for allegedly failing to carry out its obligations under the Customs and Financial Agreements has continued. It appears that some people in Nanking are even talking of enforcing a two months "economic blockade" of Hong Kong. When a U.S. owned publication in Shanghai, "the China Economist", joined in the chorus, charging Hong Kong as "a centre of speculation and smuggling, with a deteriorating influence on China's economy and the liveli- hood of her people", it was felt that the time had come for Hong Kong to answer back. The Superintendent of Imports and Exports on the 8th July therefore made a statement at a press conference refuting the vague and unsubstantial charges against Hong Kong, and listing the concrete examples of co-operation which Hong Kong had given to China in the last few years. Some of the Chinese press in Hong Kong have taken a more reasonable view than the Chinese press in China, and have pointed out that fundamental measures to improve China's economy must be taken in China itself, and that it is no use trying to put the blame on Hong Kong.
2.
Conditions on the Chinese side of the Hong Kong/ China border have been very unsettled, and Dr. T. V. Soong, Governor of Kwangtung, asked for the co-operation of the Hong Kong Government in closing the border while he conducted an extensive drive to clear a large area of the "Communist-bandits" there. The drive began on July 10th after what appears to have been quite inadequate preparation. First reports suggests that it is unlikely to be very successful.
3.
The movement directed against U.S. help in re- building Japan continues. The Leftwing Hong Kong Labour "Federation" took the occasion of the Double Seventh, the anniversary of the beginning of the Sino-Japanese war, to hold large meeting at which Chiang Kai-shek was denounced, together with the Americans who are accused of helping Chiang Kai-shek and reviving Japan. The Leftwing newspaper "Hwa Shiang Pao" continues to play up all subjects which can be given an anti-U.S. complexion.
4.
Events in Malaya continue to receive prominence, but comment in the Chinese press is developing the theme that the unrest in Malaya is largely the result of the unprogressive colonial policy followed by H.M.G., and that the inhabitants of Malaya learnt their own strength during the Japanese occupation. The K.M.T. controlled "National Times", urges the need for constant vigilance over Communist penetration in Hong Kong. This Government is in fact continuing, as regards the local Communist,
to pursue/