CO537-3715 — Page 61

Secretariat file No.1170/475.

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SAVINGRAM

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To The Secretary of State for the Colonies,

From the Governor, Hong Kong.

Date 267

(R) British Embassy, Nanking.

Consul General, Canton.

No: 19 No:38

April, 1948.

Special Commissioner,

27

5422/7/148

Singapore.

No:132

No. 27 SECRET.

Following is a political appreciation for Hong

Kong for the two weeks ending April 19th.

1.

Hong Kong and Chinese representatives met at Shataukok on April 15th on the Hong Kong China boundary to carry out a joint inspection with a view to replacing some boundary stones which had been displaced during the Japanese occupation. Agreement was reached rapidly and in a spirit of great cordiality, and the work of re-erecting the stones was put in hand without delay. This will avoid the possibility of misunderstandings arising in connection with smuggling prevention on the border. Efforts have been made since May 1946 to settle this small and it is satisfactory that it has been brought to successful conclusion.

2.

3.

matter.

Kowloon City remains quiet.

The debates accompanying the presentation of the Budget to the Hong Kong Legislative Council have led to the appearance in the Chinese press of a number of articles criticising the present shortage of education and housing facilities in the Colony. Many of these articles have revealed a bias against the Europeans in the Colony, whose "privileged conditions" are con- trasted with those of the Chinese coolies living in their midst. This criticism is ill-informed, since it is owing to the better conditions prevailing in the Colony that large numbers of Chinese have flooded into Hong Kong, and it may well be argued that the more facilities are provided, the greater the influx into the Colony will be. The Colony is doing all that it can within the limit of its resources to expand housing and educational facilities.

L

was made to the value of Hong Kong as a centre for Communist activities in South China. It was stated however that it was

It should perhaps difficult to find concrete evidence of this. be explained that there is ample evidence that Communist parties in South East Asia use Hong Kong as a centre for exchange of information, funds and propaganda. The freedom of entry for Chinese and the freedom of press allowed in Hong Kong makes it a useful refuge for Chinese political parties, and it affords the best opportunity for Communist penetration of such parties. The difficulty is not so much in the lack of evidence regarding Commmist activities but in using this evidence without compromising the sources. Dr. T.V. Soong, who visited the Colony again on April 19th, is still pressing for action to be taken to curb Commumist activities.

In paragraph 2 of the last political appreciation

(13) contained in my telegram saving No.24 of 12th April, reference

CBBHS:IS

CHAN 24/4

DRIVED

7-MAY 1948

..O. REGY.