INWARD TELEGRAM
TO THE SECRETARY OF STATE FOR THE COLONIES
Cypher (0.T.F.)
Ory on .94001/35/49.
FROM HONG KONG (Sir A. Grentham)
D. 21st May, 1949.
4
•R.
21st
PRIORITY.
No.487. Secret.
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13.30 hrs.
Addressed to the Secretary of State
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Repasted to the Deputy Commissioner General (Colonial Affairs) No. 157 " Conton by Bevingram
(3) My telegram No.434.
Hong Kong intelligence appreciation for the week ended 16th May.
Announcement that reinforcements duo ere to bring total garrison to 12,000 instead of 6,000 has been warmly welcomed. Good publicity has been given to arrival of squadron of Spitfires, Tension regarding Communist policy towerán Hong Kong continues. Alarmist articles in British newopspers and wild statements by Members of the House (e.g. Mr. Teeling suggesting the exchange of Formose for Hong Kong) have done nothing to slley it. Local Chinese Tresa on the other hand hag carried ressoned editorials advocating calm and deploring tendency to jump to unfavourable conclusiona, All argue that reasonable attitude by H.M. Government moy well lead to reasonsble response from Communiets and that trading relations must be maintained.
Ze
Influx of refugees from Shanghai has continued. Net influx in the weak endod 8th May was over 15,000. Lest minute rush of foreigners is expected. Aio lift of British subjecte from Shanghai began 15th May.
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3. Stock exchange remains in (?word omitted) reflecting ungepiness about the future, Hong Kong dollars were widely held by Chinese, who regarded them as convertable into gold, U.8. dollers or sterling. Ban on gold dealing shook their comfidence, and because of fear of further restrictions, there is a rush to convert into U.3, dollare, with disasterous effect on roto, which however has latterly shown some improve← ment.
Food prices show increase and this may lead to wage incresse demands.
There hav
Flan to build new airport at Deep Bay was announeed 13th May and prominently reported in local Press. so far been no adverse comment.
5.
There has
Interest in constitutional reform continues. been some resentment at your statement of 11th May that the apathy of the Hong Kong general public was responsible for
/ the