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SPONSORED RADIO.

As a means of both providing finance and carrying out the above aims, I would suggest the formation of one or more private limited liability companies, the first of which might be helped to acquire a concession in Macao from the Portugese for a sponsored radio station. Begun by means of a repayable loan, this should be a provitable venture. It should provide a first class news service, with at least one really good announcer of the calibre of Carol Alcott who was such a thorn in the flesh of the Japanese in prewar Shanghai.

If this is impracticable I can suggest no other sure source of funds, although internal publicity in the Colony might be handled through 'Rediffusion' as an alternative.

PUBLISHING.

The publishing of books and periodicals should also be handled on a private basis, and as far as possible as a paying proposition; I would make no rash assumptions as to how far this could be made to pay, but the bulk of the cxpense should

met.

Apart from magazines in Chinese, such simple and amusing anti-Communist books as George Orwell's 'Animal Farm' could be translated and sold in Chincse, as an example.

Students could be approached through an English-Chinese weekly for teaching them English (or Russian).

FILMS.

I have seen some of the new Communist films. They are good. Being a strong believer in the use of the film, especially for illiterates, I would advocato a small but active film set-up, also on commercial lines. Much use should be made of 16 mm. films produced in the Colony, with a wide range of appeal. They should include teaching pictures, cartoons, neve-rools, and if possible there should be co-operation with Chinese concerns making features.

CONCLUSION.

Hong Kong cannot be held by force indcfinitely if the population is hostile. The Communist propaganda onslaught has already begun and must be vigorously mot if the Colony is to be saved. American friends of mine who came with me from Shanghai think that the task is hopeless. I do not share that view, but a good deal of effort and some money must be put in now if the situation is to be saved.

(Signed) Leslic C. Smith.

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