CO537-3706 — Page 94

Original regs on 5+228/1/48

copy So 54145/16/48.

195

EXTRACT FROM SAVINGRAM TO THE SECRETARY OF STATE FROM THE GOVERNOR, HONG KONG DATED 18th FEBRUARY, 1948.

Secret

With direct negotiations proceeding between London and Nanking for a settlement of the Kowloon City question, it has dropped out of the forefront of the news. The local Chinese press, while more restrained in its tone, has however, kept the issue alive by daily and sympathetic reports on theactivities of the "Kowloon City Residents' Association", representing the hard core of squatters who remain encamped in the area, and who continue to receive funds and

encouragement from the Po On authorities (who claim jurisdiction over the area). The text of the British note to the Chinese Government setting forth the full British view, which was released to the press, was published in full by all Chinese papers. The Kuomintang. "National Times" went one better and published a facsimile reproduction of the translated text as handed out be the Hong Kong Public Relations Officer. This was presumably intended to illustrate Mr. Hollington tong's contention that the Chinese press is fair and free.