CO537-(205_1260-1262) — Page 101

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Paragraph 8 (a)

"The establishment of a Joint Intelligence Committee at Hong

Kang should be authorised".

COMMENT.

Nil.

Paragraph 8 (e)

"The question of the formation of volunteer or auxiliary Forces including a police reserve should be considered by the three

Service Ministries and the Colonial Office".

COMMENT

We agree it is most important to reactivate the auxiliary forces of the Colony. The availability of persomel within the Colony to train recruits must at present be the limiting factor. It is considered, however, that certain technical sub-units, e.g. medical, transport, signals and engineer, could be established forthwith, under the existing ordinance authorising the HONG KONG Volunteer Defence Corps, and partial training could be provided by the technical services now stationed hero.

If the policy is approved that the Auxiliary Forces should

be reactivated, a permanent staff cadre will be required

for the training and administration of the Force, of which the target figure for the Infantry is likely to be in the neighbourhood, initially, of 1,000 man,

Concurront with this the Royal Navy and R.A.F. wish to form small volunteer units for manning of landing and patrol craft and operation of radar installations respectively.

Replies to SACSEA telegram under reference

(a) Question.

"An estimate of the likelihood of attack by CHINESE War Lords"

Answer.

On local intelligence there is considered to be no immediate threat of an attack by CHINESE War Lords but the situation in CHINA is rapidly deteriorating and renewed hostilities between Nationalists and Communists may well be a prelude to the reappearance of War Lords equipped with modern arm. It is impossible to predict this eventuality more than 6 months ahead.

Statements contained in the Joint Planning Staff (LONDON) paper Paragraphs 3(b) and (c) cannot therefore be agreed.

*Appendix "A"

4.

سا

N

Ref.

CO 537/1260

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