CO537-3715 — Page 52

Secretariat file No. 1170/470.

SAVINGRAM

To the Secretary of State for the Colonies.

From the Governor, Hong Kong.

Date

18th June, 1948.

No.

46.

SECRET.

24

(R) British Embassy, Nanking.

Commissioner General, Singapore.No.175.

No.26.

Consulate-General, Canton. No. 45.

Following is Hong Kong political report for the two weeks ending June 14th.

1.

The statement released on June 3rd by the China Campaign Committee in London after its annual conference, urging the British Government to establish economic and cultural relations with the Communist regime in North China, was given considerable prominence in the press.

It was particularly welcomed by the Leftist press. The Hwa Shiang Pao, pro-Communist, in a lengthy editorial on June 7th, suggested that Britain should abandon her passive policy of leaving China to the American sphere of influence, and should adopt an active and independent foreign policy. The editorial significantly suggested that the British Government should recognise the "fait accompli" of Communist control in North China "in exactly the same way as she had recognised the Tito Government in Yugoslavia". On June 11th the Hwa Shiang Pao published the text of a letter sent to the China Campaign Committee signed by Marshal Li Chai-sum and General Tsai Ting-kai of the K.M.T. Revolutionary Committee, Shen Chun-ju and Chang Po-chun of the China Democratic League, and Ma Shu- lun of the China Democracy Promotion Association. This letter, after a few broadsides against American policy in China, urged the British Government to adopt a new China policy, and to establish relations with the liberated areas" in China. It should be mentioned that all the articles in the press concerning the China Campaign Committee statement noted the connection of Lord Listowel with that body.

2.

The Hong Kong Police have come across a curious case of kid- napping, the kidnapper (of a 10 year old boy) being a 15 year old youth who claimed with pride and confidence that he was a member of the Communist "Little Devils Corps" and that he had been sent into the Colony by his commander to do some recruiting. Meanwhile the K.M.T. press continue to accuse the Communists of conducting extensive propaganda in schools in Hong Kong, and the Leftist press, for their part, charge the K.M.T. with maintaining black-lists of pro-Communist teachers and of exerting influence over schools to dismiss such teachers.

3.

The statement criticising Chinese students' anti-American demonstrations made by the U.S. Ambassador in China, Dr. Leighton. Stuart, formed the subject of considerable editorial comment. On the whole the attitude was one of resentment regarding American policy towards Japan, and even the K.M.T. organ, the National Times, could not forebear from some mild comment. The Ta Kung Pao was highly critical of American policy, and a considerable portion of the press took the attitude that the Ambassador had over-stepped the limits by lecturing the Chinese people. The strongest comment came from the Hwa Shiang Pao, which fiercely denounced American policy towards Japan, and Dr. Stuart's statement. A movement to organise a general campaign against U. S. policy in building up Japan has now somewhat changed its ground, and is taking the line that U. S. policy is leading to dumping of Japanese goods, which compete with local products.

своих

RCO

29 JUN 1948