fir M.Logan
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might incriminate them if found. Evidence of Communist infiltration in schools continues to accumulate. Mean- while the decision to close down the Tat Tek College, notorious centre of Communist indoctrination, with over 500 students from countries all over South East Asia,
is being put into effect. .. notice has been sent to the Headmaster asking him to show cause why the school should not be closed down for violating regulations. The pro- Communist press has now come right out into the open in its denunciations of the Nationalist Government in its endeavours to seek peace and their columns are daily full of propagandist material from North China. There is a possibility that local Chinese Communists may soon seck some form of official recognition, but any approach of this nature should only be considered on a basis of absolute reciprocity being given to British Consular officers in the matter of recognition and proper treat- ment in Communist-held areas.
7.
The Hong Kong/China Customs (anti-smuggling) Agreement has now been in force for about three months. The first snuggling casc under the agreement was heard on January the 5th and a heavy fine imposed on the junk owners concerned. In the present confused political state in China this matter has ceased to excite attention.
8.
Trade between Hong Kong and North Korean and North China ports, is being attempted by some of the smaller and more adventurous shipping firms in the Colony. Several vessels have in the last month called at North Korea and done sone trade on a barter basis. A small 740-ton British steamer, the "Empire Park" (Mollers), chartered by a Chinese Company, has recently returned from a voyage to Chefoo, where trade on a berter besis was also conducted. The master reports that the local Communist officials were disciplined and correct although aloof. The more reputable well-established companies such as Butterfield and Swire and Jardine Matheson are busily exploring the possibility of re-opening trade with Tient- sir.
9.
The Kiwloon City question received a brief mention during the month when it was raised at the session of the Kwangtung Provincial People's Assembly. In reply to a question at the assembly it was stated that no instructions had been received from the Central authori- ties to pursue the Kowloon City case further. Apart from this Kowloon City renains quiet and the squatters remain.
10.
In the field of labour the three months old taxi strike dragged on into January and threatened at one time to lead to a sympathetic strike by a considerable number of other unions, At the last minute however a satisfac- tory compromise was reached, and this vexatious issue was finally resolved. The settlement appears to be working out satisfactorily. The only other labour unrest was in some of the cotton mills set-up by Shanghai industrialists, where discontentment among the weavers over the question of Chinese Now Year Bonus, led to a strike, which was soon settled.
C. B. B. HEATHCOTE-SMITH