Huang Shae-Hsiung, one of the Nationalist Delegates to the abortive Peking peace negotiations, is also in the Colony.
5.
Chinese Reform Association held inaugural meeting on 11th May, Their aim is to demand more representative government and in particular greater representation of Chinese, including Chinese whe are not British subjects. It is possible that this body may be used by Leftist elements.
6.
Valuable seizure of documents has been made by the police in a raid on premises involved in Communist financial and commerical undertakings. These documents which may throw light on Communist foreign trade plans, will be sent to you as soon as translation is complete,
7.
Ban on gold dealings effective from 15th May is tstill most unfavourably regarded by trading community, who regard it as mistaken. Hong Kong dollar has depreciated somewhat in terms of sterling and U.S. dollar. Trade with Communist North China continues fairly brisk, mainly on barter basis,
8.
Tone of the Pre-Communist Fress remains bad. - Recently there has been great output of propaganda articles
Concentrating on youth movements, and determined drive in this direction may be expected. Generally, propaganda line on international questions faithfully follows Moscow,
Copies sent to:-
Hinistry of Defence
Mr. J.K. Gardiner.