INWARD TELEGRAM.
TO THE SECRETARY OF STATE FOR THE COLONIES.
COPY FOR REGISTRATION
Cypher (0.T.P.)
FROM BONG KONG (Sir A. Grantham)
D. 30th April, 1949 R. 30th
*
10.20 hrs.
94001/28.
54145
IMMEDIATE
No. 385 TOP SECRET
Addressed to the S. of 3.
2 M 1949
Repeated to the Ambassador Nanking No. 69
K
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* Commissioner General Singapore No. 126 Canton by savingram
7
54145
Following from Kacdonald.
Begins.
Following are some of my reflections on Hong Kong affairs following discussions with the Governor and leading officials and unofficials, both Europears and Chinese, during 4 day visit to the Colony.
1. Hy telegram of about the end of March to the Foreign Office concerning overall policy in South East Asia and my personal
1/fulion) and private letter of 3rd April on the same subject to Strang
expressed my opinion that if democratic cause and British interests in South East Asia are to be adequately defended we should actively prepare and pursue with the Commonwealth, U.S. and other
friendly Governments a comprehensive policy of economic, political and military arrangements for non-communist countries in this region. My talks in Hong Kong impressed me anew with the urgency of this.
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Further victories in China in general and our naval reverse on the Yangtse in particular have gravely weakened our prestige recently. I fear that the effect of the AURTHYST incident in particular is bad in Hong Kong as it is bound to be throughout South East Asia, It is universally regarded by the Chinese here as sign of our impotence to resist Chinese Communists, and as an indication that we shell not (repeat not) have the strength to defend Hong Kong if communists wish to press for rendition or capture of the Colony. Hemory of 1941 is only too fresh in their minds and (as a loyal and influential Chinese reminded me), the Yangtse incident is painfully reminiscent of the loss of the "PRINCE OF WALES" and the "REPULSE" locally. This melancholy event has disturbed the unofficial Buropean leaders almost as badly as the Chinese. I might add that during visit to Facao, I found similar concern amongst officials and unofficials there,
As you
3. It is of high importance and urgency to repair further loss of confidence which this has caused in Hong Kong. know disappointing recruitment for the Defence Force was already a serious sign of lack of confidence in our intentions, Governor and I suggest there are series of actions which we can and should now take to restore position in the Colony, They would also have a
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