CO537-1658 — Page 103

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Hong Kong case - (client Shumwaivau).

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Apparently the Hong Kong Solicitor (Silva) is acting for Shumwaivau (client) Managing Director operating Wahkuivat po Chinese daily local newspaper circulation influencing Chinese opinion. Japanese occupation the Japanese did not dare to supress the paper but various difficulties arose, and as set out in the cable, dated September 12th 1946.

After British return, written approbation of High British officials, including R.A.C. North, then Secretary for Chinese Affairs, was given.

But after British return Chinese bodies (especially Kuomintang) tried to take over the paper and turn it into party organisation, principally with aim of returning Hong Kong to China.

Attempts in the nature of blackmail and accusations of collaboration with the Japanese were set going and apparently the paper was supressed. Later a temporary compromise was reached whereby a nominal publisher at a substantial salary and staff were put in control, all appointed by a Canton representative.

New startling turn is a demand from Chinese authorities to the Hong Kong Government for the surrender of the client

· for trial as collaborator under Chinese Collaborator Surrender Ordinance 1946 (see cable for conditions of this Ordinance) This is regarded as nothing less than blackmail and an effort to obtain complete control of the paper, with possible disastrous consequences on Chinese public opinion, especially on Hong Kong rendition question.

The client is ready to stand trial in Hong Kong by British authorities but these authorities have no case against client.

Instructions:

Engage best fighting K.C.

Immediate representations to Secretary of State to order Hong Kong Government to suspend order for surrender until matters are thoroughly investigated by London.

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