CO537-3705 — Page 236

SECRET

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

BOX No.500,

Czy 25

Стру

PARLIAMENT STREET B.O.,

LONDON, S.W.1.

16th January, 1948.

My dear Logan,

With reference to our telephone conversation this afternoon, the following is such information as we have received from D.S.O. Hong Kong on the present Kowloon situation.

Information dated 14.1.48. stated that a local report suggested the present agitation was fostered deliberatedly by the CC Clique in an effort to discredit and oust the present Foreign Minister who is a member of the "Political Science Group" and alleged to be unwilling to take a strong line with the British authorities.

Information from D.S.0. dated 15.1.48. stated that the situation was regarded as serious with a strong possibility of a boycott followed by a strike. Apart from an hysterical anti-British campaign in the Chinese Press which is undoubtedly deliberatedly fomented by the Kuomintang, there are signs that hostilities are also spreading in Left Wing quarters in the Colony as a result of humanitarian sentiment due to the evictions and Police action.

The Political Adviser has left for Nanking on instructions from the Governor to request that the Ambassador demand from the Chinese Government the immediate withdrawal of the National Times of the Colony for having published articles of a libellous and seditious nature. Failure to comply would result in

local prosecution.

Reports indicate that T.V. SOONG is anxious

that the situation should not deteriorate but may be unable to control the K.M.T. extremists.

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

Colonial Office.

You