CO537-2192 — Page 82

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The paper had a circulation of 20,000 a day when Japan surrendered. That has since increased tc 50,000 a day. The first KU OMINTANG move took place in January, 1946, when the publisher of the "NATIONAL TIMES" the local KUOMINTANG organ, invited SHUM to demonstrate his "loyalty" by joining in an agitation against the construction of the PINGSHAN Airfield and for the return of HONG KONG to CHINA. When this was refused he demanded a "gift" of 300 rolls of newsprint (then worth HK$360,000) threatening that if it were not forthcoming SHUM would be included in the official list of "traitors." In the meantime Chinese soldiery ih KOWLOON had been raiding news- stands and destroying copies of SHUM's paper. After the request for this "gift" had been refused CANTON and KUOMINTANG apers in HONG KONG, began a campaign against SHUM as a "collaborator" and demanded that his paper should be handed over to the Chinese Government. At the same time circulating of the "WAH KIU YAT PO" in CANTON was prohibited.

In May LI Tai-chao aproached SIUM and stated that the KUOMIN TANG desired to take over control of his paper, Unless he agreed his name would appear in the forthcoming list of "traitors."

AB Shum refused to surrender control his name duly appeared as No.98 on a list of 100 "traitors" published in CANTON on June 6.

General CHANG Fa-kwei, C. in C. in South CHINA was approached through intermediaries, and eventually agreed that if a certain Major General WONG Hai-chung, ublisher of the "CHUNG CHENG YAT F0" were appointed nominal publisher of the "WAH KIU YAT FO" at a substantial monthly salary, the order for SHUM' arrest would be cancelled. SHUM rather foolishly agreed tothis. A no sooner had Major General WONG boen installed than he began to appoint his own nominees to the editorial staff. WONG then reported to CANTON that he really had no power on the paper, with the result hat a demand was made that new shares should be issued which would give the KUO INTANG 51 per cent. interest in the journal. SHUM would have to leave the paper, and if he surrendered to CANTON he would escape with six months' imprisonment. This demand was repeated at the end of August, when SHUM was notified that a demand for his surrender was being made to the British authorities. He has gone into hiding ever since.

It is likely that the British authorities would surrender man whose offence, if any, was committed in HONG KONG, and not in Chines . territory. But a showdown has now become inevitable. KUOMINTANG black mail must be frustrated, and the ten KUOMINTANG Directors who have now installed themselves in the paper's offices with fat salabies, must be ejected, if any vertige of a Chinese free press is to remain in the Colony

It should also be made plain that the maintenance of offices in HONG KONG by KUJOMINTANG organs, and their continued activities, will no longer be tolerated, and that if CHINA required official representator here it must be on the same basis as that of any other foreign Government i.e., though acceptable Consular officials. No doubt should be left in the minds of the Chinese officials as to the British Government's inten- tion to administer HONG KONG as a British Colony, and to require of non-British Chinese the conduct reasonably to be expected from friendly alien residents. Unless some such action be taken Chinese who are Briti. subjects or are logal citizens of HONG KONG may be forgiven for manoeuvring to put themselves into a favourable position with the KU OMINIANG when as will be inevitable, control of the Colony passes out of British hands.