CO537-2192 — Page 10

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Mr. Seel.

This has been delayed for the papers and for a copy of the Foreign Office telegram referred to in paragraph 6, which however has not yet arrived. I don't think we need wait for it any longer.

In sending a copy of the despatch to the Foreign Office, as Miss Ruston suggests, I would say that the Secretary of State is disposed to agree with the Governor's views as to the attitude to be adopted by the Hong Kong Government towards the Kuomintang, but that, he is very much concerned at the activities and aims of the Hong Kong Kuomintang and the degree of its control over the Chinese population in the Colony, as reported in the enclosures to the Governor's confidential despatch of the 24th of November, a copy of which was sent to the Foreign Office on the 10th of January and he is anxious that effective action should be taken with the least possible delay to reduce and if possible to terminate the Kuomintang's influence in Hong Kong. I would say that the Secretary of State would very much like to see some immediate action taken and ask for Foreign Office advice and views on this point. I would also ask for the Foreign Office views on the Governor's suggestion in paragraph 7 as to the longer term objective and his further suggestion in paragraph 8 for achieving it.

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