CO537-3715 — Page 69

L.M.27/48s

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SAVINGRAM

Secretary of State for the Colonies.

From the Governor, Hong Kong.

15.

Date 12 February 1948.

No. 9 SECRET. 54228/1/48

Repeated to:

3

(No. 31)

Special Commissioner, Singapore. British Embassy, Nanking. (No. 6). British Consul-General, Canton.

(No. 21.)

Following is political appreciation for Hong Kong for

the two weeks ending January 26th,1948.

1.

The agitation over the Kowloon City eviction case has resulted in the deliberate whipping-up of anti-British feelings all over China, culminating in the deplorable outrage on January 16th at Canton where a mob burned down the British Consulate and other British properties. The Chinese press in Hong Kong has on the whole adopted the same line as that taken by the press in China, seeking to explain the Canton outrage as the unfortunate The but understandable outcome of the Kowloon City evictions.

National Times", the Kuomintang organ, has attempted to establish the blame for the Canton occurrences on the Communists, but it

These seems clear that Kuomintang elements were mainly responsible. elements are also responsible for keeping alive the agitation over

A considerable number of Kowloon City, which still continues. the original squatters remain encamped in the Kowloon City area, though their zeal for martyrdom is lessening. They are, however, kept going by donations of money, food and clothing by "comfort missions" from Canton and elsewhere.

2.

A recent example of the Chinese tendency to regard Hong Kong as quasi-Chinese territory was the establishment in Hong Kong, without the knowledge of the Hong Kong Government, of an office of the National Pilotage Board of the Ministry of Communications. This organisation sought to collect pilotage fees from Hong Kong to Canton in Hong Kong dollars. As a result of representations made to the Office of the Chinese Special Commissioner for Far ei gn Affairs stating that this organisation was not officially recognised and had no status in the Colony, it has now unostentatiously been closed down.

3.

The unheralded arrival of a small Chinese warship in Hong Kong, contrary to International usage and courtesy, is yet

The another example of Chinese policy towards Hong Kong. appearance of this vessel, flying an out-sized Chinese flag, just

Steps are after the Canton outrage, may in fact be deliberate. being taken to make the Chinese comply with ordinary International procedure in this matter.

4.

Although editorial comments are scarce, the Chinese press is showing signs of considerable concern over the worsening of the

The Civil War situation in Kanchuria and in the Yangtse regions. possibility of the Civil War spreading south of the Yangse in the not so distant future is how being seriously entertained.

RECEIVED

20FER 1948

C. O. REQY