Secretariat File: 9/3571/49s.
13
SAV I
NGRA M.
SECRET.
TO: Secretary of State for
the Colonies.
(No. 19)
Date:
No.
82.
SECRET.
(R) British Embassy, Nanking (No. 5
Consulate-General, SHANGHAI
Comm.-Gen., S.E.A. (No.
62.
}
British Embassy, BANGKOK (No. 89 ) Consul-General, CANTON (No. 35 High Comm., KUALA LUMPUR (No. 84 British Legation, MANILA (NO. 88. G.0.C., Hong Kong.
Copy to D.S.O.
Hong Kong Political Summary for April 1949.
Tension in Hong Kong over the possible threat from a Communist-controlled China grew considerably during the month as a result of the breakdown of the peace negotiations in Peking, and the subsequent crossing of the Yangtze by the Chinese Communist armies. Morale among the European popula- tion suffered a worse blow as a result of the incidents affecting H.M.S. "Amethyst" and other British warships on the Yangtze which were attacked by Communist artillery. The confidence of many who had previously thought that the Chinese Communists were amenable to reason was severely shaken by this episode. Followed as it was by the blatant Communist newspaper attacks on the British warships, who were accused of aiding the Nationalists and aggressively shelling Communist gun emplace- ments, the "Amethyst" incident may be regarded as marking a definite turning point in local feeling towards the Chinese Communists. Hitherto it has been argued by many that they could not be worse than the Nationalists, and that their need for foreign trade would make them behave reasonably towards foreign, and particularly British interests, the more so since the British had managed to steer clear of entanglement in the Chinese civil war. The "Amethyst" incident has now made many feel that when regular Communist forces appear on the Hong Kong border, they may not be easy to restrain and an immediate military threat to the Colony will result. There have accord- ingly been incessant demands both from the Colony itself, and from M.P.'s and newspaper men who have visited Hong Kong in recent months, that the defence of the Colony should be rein- forced forthwith, otherwise the Communists will be encouraged by our weakness.
2.
The general public have watched with growing dis- appointment and disgust the internecine squabbling and feuds of the Nationalist Chinese leaders. It is now realised, with resignation, that there is no hope of any unified and con- certed effort being made by the rival K.M.T. groups to set up a strong front against the advancing Communists, and their arrival in South China is expected before the end of the summer. In Canton particularly, the administration of Governor Hsueh Yo and Pacification Commander Yu Han-mou is unfavourably regarded by Hong Kong Chinese who consider it corrupt and useless. Under these conditions the situation in Chinese Territory across the Hong Kong border is alarming, since Communist guerilla control is spreading and banditry is flourishing. This creates a direct threat to the New Terri- tories and imposes an extra strain on the Colony's Police who are mainly responsible for frontier control.
Despite the alarm occasioned by events in China the Colony itself remains quiet and law and order is being fully
3.