CO537-3715 — Page 62

Secretariat file No.1170/475.

SAVINGRAM

RECEIVED

73 APR 143

To The Secretary of State for the Colonies. C. O. REGY

From the Governor, Hong Kong.

Date 12.

April, 1948

(R) British Embassy, Nanking.

Consul General, Canton. Special Commissioner,

13

No:

166.

No: 36.

Singapore. No://5

No. 24. SECRET

Following is a political appreciation for Hong Kong

for the two weeks ending April 5th.

1.

There are indications that the Chinese Government will expect the Hong Kong Government to take stronger steps in

The K.M.T. future to control Communist activities in Hong Kong. newspaper "National Times" in a recent editorial warmly welcomed the action of H.M.G. in purging Communists from security posts in the Civil Service in the United Kingdom, and enquired why the Communists should not also be banned in Hong Kong, since they are all part of the Moscow Fifth Column. During a recent private visit to Hong Kong, Dr. T.V. Soong, Governor of Kwangtung, asked about the possibility of arresting known Communist leaders in Hong Kong. It was pointed out to him that so long as the Communist Party is allowed to operate in the United Kingdom no action can be taken against Communists here unless they engaged in actions inimical to the law and order of the Colony.

2.

The Communists and dissident Chinese leftwing organizations in Hong Kong, including also the K.M.T. Revolutionary Committee of Marshal Li Chai-Sum, show signs of increasing confidence and hope. It is not easy to assess the reasons for this. The recent Communist coup in Czecholovakia may have given encouragement to local Communists, but its effect on the political situation in China is remote. Hong Kong may have some value as a centre for Communist couriers and propaganda into South China and South East Asia, but it is difficult to

Should such evidence be find concrete evidence of this. produced by the Chinese Authorities, it might be difficult to avoid taking some action against the local Communist organisations.

3.

The first meeting of the National Assembly of China in Nanking is being followed closely by the local Chinese press, The arbitrary exclusion of certain elected deputies on the basis of pre-election agreements over partition of seats is causing a certain amount of scepticism, and the unruly antics of some of the deputies is not leading to any great respect for the National Assembly as China's first constitutionally elected body.

When the

4.

Early in March, the Chinese naval authorities in Canton announced their intention to send a small warship to patrol in Mirs Bay, the waters of which are British, in order to give protection to Chinese Customs Stations on the Chinese side of the Bay. This decision was clearly made in ignorance of the fact that the waters of the bay are British. matter was explained to the Chinese, their decision was not pursued. The Hong Kong Government informed Dr. T.V. Soong that if protection was needed, there would be no objection to a Chinese Maritime Customs cruiser patrolling those waters forthwith in advance of the coming into force of the relevant provisions of the Sino-Hong Kong Customs Agreement. This gesture of co-operation by Hong Kong appeared to be appreciated.

1

15. The Kowloon City