SAVINGRAM
To the Secretary of State for the Colonies.
From the Governor, Hong Kong.
Date
No.
-2-
vention in the affairs of other countries, whose laws they make a point of observing. The statement also refers to the right of asylum, and protests against the action of certain Governments (Siam and Netherlands East Indies are indicated) in deporting China Democratic League Members to China.
4.
K.M.T. controlled newspapers continue to report the unearthing of further "evidence" showing the use of Hong Kong as a centre of intrigue by the Communists, and from this argue that action to suppress the Communists is justified. In reporting or events in Malaya there is discernible an under- current of comment that events there are the results of Colonial policy thwarting the expression of nationalism, which has already made itself felt in Vietnam, Indonesia, Burma etc.
5.
Dr. T. V. Soong is believed to have made further efforts to court the support of Marshal Li Chai-sum, who, however, refuses to leave the sanctuary of Hong Kong. Reports from Nanking suggest that the American Embassy there attaches considerable importance to the Marshal's possibilities as an intermediary in the Civil War.
6.
Meanwhile Dr. Soong continues his efforts to build a bastion in South China. Part of his plan includes establishment of a port at Whampoa, which could compete to some extent with Hong Kong. Somewhat rosy accounts of the progress of construction at Whampoa continue to appear in the press, and Dr. Soong has been trying to interest overseas Chinese capitalists, including Aw Boon Haw, the "Tiger Balm King" in the venture. The Reconstruction Survey Group of the United States China Aid Mission, under Mr. Charles Stillmar, recently visited Canton and Whampoa, but they were more impressed with the possibilities of Hong Kong, which they also visited, and where they were shown over the port facilities.
7.
Kowloon City remains quiet. There have been further suggestions by the Chinese Government for a compromise solution, but these still leave the question of responsibility for maintenance of law and order in the area unclarified. Meanwhile in the Kwangtung Provincial Council two Councillors for Po On District (adjoining the Colony) tabled a proposal that the Po On District Government should immediately be authorised to establish administration over Kowloon City. It is unlikely that the proposal will be adopted, as responsible Chinese opinion realises that the dispute is one for settlement by diplomatic negotiations.
K.M.A. BARNETT
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