Secretariat File: 9/3571/48s.
SAVINGRAM.
TO: Secretary of State for the Colonies.
Governor, Hong Kong.
(R) British Embassy, NANKING
(No.
Y)
Consulate-General,
SHANGHAI (No. ња)
Comm. General, S.E.A. (No. British Embassy,
BANGKOK (No. 3)
FROM:
Date:
12th
High Commissioner
January, 1948.
No:
7
SECRET.
KUALA LUMPUR (No.
H
8.)
British Legation, MAN ILA. 5 G.O.C., Hong Kong.
Copy to D.5.0. separately.
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION (M) OF THE PUBUC RECORDS ACT 1988
Political Summary No.8 for December 1948.
The crisis in China continued to dominate the political picture in Hong Kong. The view, prevalent during November, that the breakup of the Nanking regime was imminent, receded somewhat, when it appeared that the position around Pengpu had been temporarily stabilised. Discussion about peace or compromise possibilities became however much more open and was frankly discussed by the Chinese press, even by the papers with K.M.T. affiliations. The K.M.T. in Hong Kong continue to use brave words, but it is clear that they no longer believe them. The banning by the Canton authorities of the import into Canton of certain Hong Kong newspapers which were considered to be publishing news "undermining the national morale" was really an empty gesture.
2.
High Chinese Government officials on their way to and from Nanking and the South planning a line of retreat, more for themselves than for their Government, passed through the Colony in increasing numbers. The families of á number of high Nanking officials arrived in the Colony during the month, and the influx of rich Chinese from the north continued and was reflected in increased rentals and key money.
3.
Among Chinese in Hong Kong there is no confidenceO in the possibility of Dr. T.V. Soong being able to turn Kwangtung and the other Southern provinces into a last bastion against the Chinese Communists. The idea of Chiang Kai-shek and his Government moving wholesale to Canton is not welcomed and does not seem expected in the final event.
4.
The United Kingdom attitude of neutrality towards the China problem has been favourably contrasted with that of America. Every attempt is made by Left Wing opinion to impute the worst motives to every American action in China. No recognition is given to tho obvious fact that President Truman and his advisors are most reluctant about giving help to maintain in power the corrupt and inefficient Chiang Kai-shek regime.
5.
The acceleration of events has naturally led to increased activities by Left Wing dissident elements in
It is knOWIL
that a number Horg Korg. of meetings took place during December attended by represen- tatives of the China Democratic League, the K.M.T. Revolu- tionary Committee, and other "Democratic Parties", as well as by Chile se Communists representatives, in which the composition of the contemplated Coalition Government has been discussed. The refugee political leaders in Hong Kong appear to have realised that they are not in a strong position to press their claims for inclusion in a new regime if they are not in at the kill when the time comes. General Tsai Ting-kai, Shen Chun-ju (Hong Kong Chairman of the C. D. L.) and others who left in September were followed
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