CO537-3715 — Page 68

SECRET.

L.M. in 40/48.

SAVINGRAM

To the Secretary of State for the Colonies.

From the Governor, Hong Kong.

Repeated to:-

Date 18

K

February,1948.

No.

11

54228/1/14

اس

Special Commissioner, Singapore.

No.4/

Br.Ambassador,Nanking No. 7, Consul-General, Canton No.4

Following is political appreciation for Hongkong

for the two weeks ending February 8th, 1948.

2.

With direct negotiations proceeding between London and Nanking for a settlement of the Kowloon City question, it

The local has dropped out of the forefront of the news. Chinese press, while more restrained in`its tone, has however, kept the issue alive by daily and sympathetic reports on the activities 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. Kuomintang "National Times" went one better and published a facsimile reproduction of the translated text as handed out by the Hongkong Public Relations Officer. sumably intended to illustrate Mr. Hollington Tong's contention that the Chinese press is fair and free.

3

The

This was pre-

The Acting Chairman of the China Democratic League SHEN CHUN JU, in a recent statement to the press, emphasized

On that the League does not intend to use violent means. the same day, a statement was issued to the press attacking the proposed loan to be made to China by the United States as a result of Mr. TSU-YEE PEI's mission. It is interesting that this statement was jointly signed by representatives in of the main dissident "Democratic" groups in Hongkong, particular the China Democratic League, the Kuomintang Revol utionary Committee (Marshal LI CHAI SUM). This latter body has suffered a blow in the recent capture of one of its Committee members, HUANG CHING YAT (-) in the Chinese Territory, while allegedly making contact with some "Bandits". It is rumoured that the visit to South China of General WU TEH-CHEN, Secretary-General of the K.M.T., who passed through Hongkong on February 3rd on his way to Canton, is connected with the activities of Marshal Li's groups, which are causing some concern to the Kuomintang.

RECEIVED

27 FEB 1748

C. O. REGY

Suka.

Kinoß