CO537-3705 — Page 123

SECRET

Telephone Nos.

REGENT 6050.

WHITEHALL 6789.

Telegraphic Address:

SNUFFBOX, LONDON.

BOX No. 500,

PARLIAMENT

STREET

B.O.,

LONDON, S.W.1.

S.F.75/Hong Kong/1/B. 3. b.

23rd January, 1948.

Lraan;

Dear

25. Further to my S.F.75/Hong Kong/1/B.3.b. of 16.1.48.,

you may care to have the following information dated 21.1.48. which has reached us from D.S.0. Hong Kong regarding the situation.

Tension continues with general uncertainty as to possible developments and there have been talks of a boycott by the Chinese Seamen's Union in Canton. The local Left Wing and Kuomintang Press are indulging in mutual recriminations, each accusing the other of being responsible for the Canton troubles. All informed quarters however, discount the suggestion that the Communists have been responsible and are convinced that K.M. T. extremists are the sole instigators.

Other evidence indicates that SOONG and the moderates disapprove of events and also that the K.M.T. extremists not only intended to stir up anti-foreign feeling but also to use the opportunity to discredit the Political Science Clique.

Sir Marston Logan, K.B. E., C.M. G.

Colonial Office.

/All evidence shows

(Copies: A.S. Halford, Esq., Foreign Office,

Lt. Col. C.H. Tarver, D.S.O. (M.I.2.)