SAVINGRAM

To

From the Governor, Hong Kong.

Date

No.

2

,

Nanking authorities, who accused him of malversation of funds. With a few supporters in Hong Kong CHU continued to maintain he was the proper representative of Chinese labour, and in this capacity he attended several meetings of the World Federation of Trade Unions, where he associated with labour representatives from Communist-controlled areas of China. He has now thrown in his lot with them. CHU had no local influence in Hong Kong labour circles, having spent little time in the Colony, and it is unlikely that his conversion will mean an increase in Communist influence in Hong Kong labour.

6. Considerable interest has been aroused among local Chinese by the announced intention of the Chinese Government to collect "Special relief levies" in Hong Kong. No announce- ment has yet been made as to how the Chinese Government proposes to implement its plan in this British Colony but it is obvious that subtle forms of political blackmail and pressure could be brought to bear on rich Chinese here. The press as a whole expresses doubt whether much money would be forthcoming, while the Leftist press violently denounces the scheme as an effort to fill Nanking's coffers for the civil war. The situation is being carefully watched and it will be necessary for the Hong Kong Government to indicate its views if any positive move is made by the Chinese Government towards collecting the

levies" here.

RECEIVE

30M

RC, O. REGY

сын

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