CO537-1658 — Page 26

larly interested in assisting in the investigation of war

criminals and quislings and hoped to work closely with the

Hong Kong Police. He went on even further to express regret

for the activities of his predecessor, Mr. Shum.

7.

Following on this the Hong Kong administration accorded

Mr. Chen recognition as head of the Kuomintang here, which

implied recognition of the Kuomintang as a society having lawful

existence in the Colony.

In April last Mr. Chen was succeeded by Mr. Lee Tai

Chiu. His appointment was noted in official correspondence

between this Government and the office of the Commissioner for

Kwangtung and Kwangsi of the Chinese Ministry of Foreign Affairs,

which expressed the hope that the Hong Kong Government "would be

good enough to co-operate towards facilitating the normal func-

tions of the Hong Kong and Macau headquarters of the Kuomintang".

9.

Whatever these "normal functions" might be, the Kuo-

mintang has continued to pursue a policy of extending its

influence over the vernacular press and Chinese educational,

social, labour and commercial organisations in the Colony and

of bringing as many societies and individuals as possible within

its fold. It claims to have brought under its direction about

120 such organisations in the Colony and the policy is constantly

to integrate smaller associations under the wing of new and

larger general associations. In all these directions it tends

to come into competition with other Chinese political parties

operating here openly or clandestinely, the chief of which are

the Chinese Communists and the Chinese Democratic League.

Instructions have recently been issued to the heads of the Hong

Kong Government departments most likely to be affected to ensure

that all signs of such activities that come to their notice are

fully reported to Government.

10.

It may be useful to give a brief account of the

activities of the Kuomintang and a summary of what it has

accomplished to further its ends in each of the spheres indicated.