CO537-2187 — Page 181

withdrawn 5 kilometres from the Chinese frontier,

(c) full indemnity should be paid to the relatives of

the deceased, and (d) negotiations should immediately

be begun for the retrocession of Hong Kong to China.

campaign developed along the usual lines but died down

towards the end of the month.

The

There are indications that the Central Government

have begun to feel that in their agitation for the retrocession

of Hong Kong the K.M.T. in Canton and Hong Kong have been

going too far, and that they have issued instructions that

this matter should be left to be dealt with through normal

diplomatic channels.

2.

Kuomintang.

In a review of the labour situation in Hong Kong, the

Government Labour Officer has drawn attention to the large

number of associations, clubs, societies and schools pledged

to K.M.T. policy, numbering some 85 in all. As regards labour

itself, the Labour Officer estimated that if the present

activities of the K.M.T. continue as they are doing they

will soon have control of something like 75% of the labour in

the Colony. One means by which the K.M.T. has achieved this

position has been by supporting demands of the labourers

which have no economic justification at the present time.

The Police report that the K.M.T. have been mobilising

the support of Secret Societies in the Colony. General LI FUK LAN

is stated to have been commissioned by Generalissimo Chiang Kai

Shek to organise the Triad Societies (Hung Moon) under K.M.T.

auspices. 130 members of 13 Triad Societies came to a

reception given by General LI at the end of November at which

they pledged themselves to a policy

(i) to back up the K.M. T. in establishing a

National Government.

(ii) to do away with the Chinese Communist Party

and undesirables trying to upset the National Assembly.

(iii) to back up the K.M.T. in establishing a

new China.

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