CO537-3705 — Page 227

Cypher (0.T.P.)TO

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

LUPY FOR REGISTRATION

FROM HONG KONG (Sir A. Grantham)

D. 17th January, 1948.

R. 17th #f

13.35 hre.

31

MOST IMMEDIATE

No. 67 Becret

Ropes d'(69)

Addressed to the B. of S.

Repeated to the British Ambassador Nanking No.22, and as savingram to Consul General Canton

(23)

Your telegram No. 74.7

Kowloon City.

Previous to receipt of your telegram, I had issued instructione to all concerned to exercise oare to avoid any incidents calculated to aggravate the situation. Desirability of continued restreint fully understood.

2

The situation in the Colony is unchanged, and there 18 thus far no (repeat no) evidence of reaction from the Canton affair likely to lead to looal disorder,

*x

In responsible circles in the Colony itself Europeans are watching every move closely. Great significance will certainly be attached to H.M. Government's reaction to the Canton outrage and to Kowloon City (? reaction) with which it is inextricably linked in all minds. I may mention that at this morning's special meeting of the Executive Council Chinese member raised directly the question of Britain's intentions in regard to future sovereignty of Hong Kong.

*

I am not (repeat not) in favour of Chinese Minister's Agent making Kowloon City a custome station, My Advisers share my view that a settlement en theee lines would be interpreted as a complete surrender in local oyes by H.N. Government to China, Kowloon City is, moreover, fitted neither by topography nor dimsasions for the purpose proposed.

54

I have already instructed Heathcote Smith in Nanking to suggest to H.M. Ambassador the desirability of requesting immediate withdrawal, from Hong Kong of the National Times, the consistently mischievous and provocative newspaper entirely supported by an officiel subsidy, All Executive Council this morning were unanimous that the Ambassador's Comand should be extended to include withdrawal from this Colony of Kuenintsng and (?+ affiliated) San Min Chu I Youth Corps. In this connection I ( corrupt group) invite reference to my predecessor's secret despatch No. 6 or 17th April, 1947. Though not (+ 2 corrupt groups) of direct proof, the presence and influence of these organisations in Hong Kong has been responsible, along with Kwok's ineptness, for the emergence of Kowloon City as a positive lasus, San Min Chu I Youth mumbers are reported to have taken a prominent part in yesterday's Canton outbreak and I am at present considering, in consultation with H. M. Ambassador, appropriate action in regard to the National Times, who have recently laid themselves open to a charge of sedition3 2ibol in connection with police

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