Horg Kore

1st October, 1949.

CONFIDENTIAL.

Dear Heathcote-Smith,

As you know, I have been in Shanghai since the

Communist take-over as correspondent for a British News-

paper group.

During that time I had opportunities of studying

Communist propaganda tactics and did so with much interest

having had a background of similar experience myself during

the war.

The Following are my general conclusions:

COMMUNIST PROPAGANDA IS GOOD AND POWERFUL.

The Chinese Communists have thoroughly mastered the

technique of mass propaganda. Their propaganda machine is

extremely powerful, and very good indeed.

It utilises every

form of approach, films, radio, public address systems, the

press and all forms of literature, school-books, posters,

speakers and teachers, etc. It has apparently limitless

resources.

I will not discuss details of methods, save for

saying that students and groups of employees are largely used

as covert agents, and that many of the appeals are directed

towards playing on Chinese national feeling.

ATTITUDE TOWARDS HONGKONG.

In Shanghai, the Communists make no secret of

their intention to 'liberate' Hong Kong.

Chinese friends

in close touch with them tell me that the present policy

is not to make any attempt to use military force. Hong Kong,

they say, will be left alone in that respect for two or

three years, during which time the populace will be given

the full effect of propaganda in favour of 'freedom' and

'liberation'.

After that, internal troubles will they

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