I think it is important in the first place that we should be quite clear as to the facts of the restrictions which the Chinese Communist Government are putting on foreign news and information services, including newspapers, in China. It would appear, for instance, from the press cutting which I have now attached at (47) that the North China Daily News is still to continue and will publish a monitored foreign news service, and it is not clear therefore that there is a complete ban on all foreign newspapers and news services. Perhaps we might ask the Foreign Office to let us know the position.

We may take it, however, that a virtually complete ban or its equivalent in the form of a strict control ́ - does now exist in China, and there are grounds therefore for justifying, as a matter of retaliation, the closing down of Chinese Communist news agencies in Hong Kong, such as the New China News Agency, if and when this may be desired. There thus would seem to be three possible lines of action:

(a) To let the N.C.N.A. continue and

(b)

(၁)

deliberately to tolerate its abuse

of position as a news agency, on the grounds that it is better to open rather than subterranean sources of Commmunist news.

To close down the N.C.N.A, now as an act of retaliation for the action which the Chinese Govemment is taking against foreign news services.

To wait until the N.C.N.A. again flagrantly abuses its position and lays itself open to closure or suspension.

On the whole I would be inclined to suggest that the last is the best course to take, but it should be left to the discetion of the Hong Kong Government to raise it in the light of local events. It is doubtful whether the Foreign Office will favour any act which savours of retaliation as long as there was any British news or information service existing in China.

I have commented on this as a matter of Communist propaganda, but I am passing the papers through Brigadier Johnson to see and possibly to comment, because it is his province in the Information Dept., to deal with all press matters in the Colonies.

W.5.. Morgan

10th September 1949.

I shanges agree with A above & suith the init prava of (44)

Redeumen 10.9.49

M. Blackhune

41/42

rent with F.O.commen

Junless the situation has matinally changed

it appears kommer

I am with them

Jurijn

hews

in latotheongs

пишемому espinally exterally on the hostelling the allound bemotions it's homiting

Ishali hat 41/42 he the

news seine

Cast word for the present.

12/9

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