CO537-3703 — Page 41

PRESSURE UPON HONGKONG

DIVIDED LOYALTY OF THE CHINESE

POPULATION

KUOMINTANG PINPRICKS

Times

2/6148

From Our Special Correspondent in Hongkong

19

The recovery of Hongkong has become school and suspected of being "traitors a legend in the Far East. To come here-ie., not conforming with San Min Chu from any other country in Asia except|

I doctrines-and a Public Relations officer Malaya is to step into a world of almost going round all the local Chinese news- recently sent from Canton spent a week ostentatious prosperity, of streets thronged papers and never once called on the with the latest American cars, of shops Government. About every two months stocked with goods from all over the there has been an "incident," sometimes world, of wharves lined with ocean-going in itself of a most trivial nature, which steamers and Chinese coastal craft. The has been whipped up into a major issue scene has been often described; it illus-and outside the colony. One concerned a by Kuomintang organizations inside trates the great powers of recovery latent hawker who was chased by a policeman in China when there exists a framework of and fell down and subsequently died of order, stability, and good government in a ruptured spleen. More recently there which the Chinese genius for trade and has been the affair of the Kowloon industry can express itself.

squatters, leading directly to the outrage at Canton. The reason why this incident is still not closed is that the only settle- ment which will satisfy Nanking is one that recognizes, or can be interpreted as recognizing, Chinese jurisdiction in an area within the boundaries of the colony. RESURGENT XENOPHOBIA

Whether this prosperity is sound or un- sound is uncertain. In one way Hongkong has benefited from the chaotic conditions prevailing in China since the end of the war. Many businesses and much capital from the north have taken refuge in this colony; much trade that would otherwise have gone direct to Shanghai or Canton has been routed through it. Much illicit] If the Kuomintang recovers its position trade also has brought big profits to local and becomes a strong and stable govern- traders. In the past, because of its geo- ment, this campaign against Hongkong graphical position and the excellent ship-will be intensified. There is also a danger ping, banking, and warehousing facilities that if things continue to go as badly for which it had to offer, Hongkong made the the Nationalists as they are at present, best of both worlds: it thrived whether the Nationalist leaders will try in despera- conditions on the mainland were stable or tion to create a diversion at Hongkong unstable. Those who argue to-day that and regain a little "face" with the people. its best interest lies in a prosperous China It would appear that Nanking, as its mis- ignore the inevitable political repercus-fortunes multiply and its inability to pro- sions of prosperity. Such conditions might duce any real programme that will gain be in the best interest of British trade in the enthusiasm of the masses becomes in- China as a whole, but probably not of creasingly evident, is falling back on the this colony. A prosperous China pre-old barren device of xenophobia, supposes a strong and stable Chinese Most of the Chinese inhabitants have government; any government of this kind, whether of the right or the left, would aim at the retrocession of the colony.

no desire to see the chaos prevailing at Shanghai introduced into Hongkong. Retrocession to Chinese control under A VULNERABLE POSITION

present conditions would result in chaos overnight. These Chinese are not pro- Hongkong is vulnerable to twofold British, but they want a continuance of pressure. A blockade from the mainland British administration. Their trouble would soon cause its entrepôt trade to is that they are frightened; they want to wither. It would then be easy for a hostile be in with both sides. It is easy for the régime across the frontier to infiltrate and Kuomintang to exert pressure on them gain control of the Chinese labour on directly and indirectly, as nearly all have which both the port and the public services interests and relatives in China. This fear depend. The permanent garrison is to be has been accentuated by the apparent increased to one British battalion, two indecision of his Majesty's Govern- Gurkha battalions, and one field regiment, ment since the end of the war. but it is obvious that in a city of nearly The airport, for example, is seriously in- 1,750,000 Chinese there are certain situa- adequate. A good modern airport will tions with which troops would find it diffi- cost about £5m. The colonial government cult to deal without the active support of is able and willing to put up fim., but the a proportion of the Chinese population. balance would have to come from Britain. Support of this kind is lacking at the pre- Ever since the end of the war this question sent time and it must be the aim of British of the airport has been hanging fire. It! policy here to bring it into being.

is easy to understand the reluctance of

The Kuomintang has never concealed the Treasury to gamble on the future of its opinion that British rule constitutes an Hongkong in the present unsettled state infringement of Chinese sovereignty. The of Asia. Conversely, it is natural that the Communists in the north have so far been Chinese should have doubts about British careful to avoid making any declaration intentions. of policy towards Hongkong because they had need of a base in the south from which

UNDECLARED POLICY their agents could work without being pro- There has been no declaration of policy scribed. This has been purely a question and intentions towards Hongkong since of tactics and a strong Communist régime the end of the war. Many British residents on the mainland would be quite as insis- have long felt that the Government should tent as the Kuomintang on the retrocession publicly announce its intention of staying of British rights.

in the island until the lease expires in

British policy towards China in this 1997. Such a declaration might seem pro- respect since the end of the war has been vocative to the Chinese Government, but marked by conciliation. All Japanese war it would probably help to rally some of material found in Hongkong was handed the local Chinese to our side. Others think over to the Kuomintang. Chinese troops actions, such as a decision to go ahead used the port to embark for North China with the airfield, more effective than mere and were for many months quartered in words. It is obvious that the position will great numbers in Kowloon. Every effort depend largely on support which can be was made to expedite the trans-shipment enlisted from the local Chinese. They of Unrra goods to China. Kuomintang will not give that support openly unless agencies and newspapers have been they feel convinced that the British, on allowed to function in the colony without their side, are prepared to take as strong interference. More recently, to help the a line as lies within their power. British Chinese Government control the flow of action in regard to Honduras and the Falk- illicit goods, the two Governments signed land Dependencies has been closely an agreement permitting Chinese Customs watched here. officials to operate in the colony.

The introduction of an elected munici- These and many other expressions of pal council, balloted for by every one in good will have not been reciprocated by the colony with seven years' residence or

of. Cust the Chinese Government. On the contrary, more, has roused no enthusiasm,

It is p their attitude has been marked by a thinly feared that it will be used by the Kuomin- veiled hostility, by attempts to infiltrate tang to infiltrate their nominees into an their own party control into the colony, important organ of local government. and by any measures that could embarrass The measure was imposed by the Colonial the local administration.

Office against the wishes of the Colonial The following minor incidents are Government and educated Chinese resi- typical. The Kuomintang labour dents. It is also felt that more power organization in Canton recently addressed | should be delegated by the Colonial Office. questionnaires to all the unions: a letter The Hongkong moratorium Bill is a intercepted in 1946 from the Kwangtung striking example of the delays imposed by Provincial Educational Department reference to London. A draft Bill was addressed to the "Hongkong and Macao submitted in January, 1946. Only this Overseas Educational Bureau" asked the month has the text of the Bill been latter to keep a check on four teachers published here and the necessary recently appointed to 2 Government machinery set in motion.

(8)