Huang Bhae-Hsiung, one of the Nationalist Delegates to the abortive Peking peace negotiations, is also in the Colony.
5.
Chinese Reform Association held inaugural meeting on 11th May. Their aim is to demand more representative government and in particular greater representation of Chinese, including Chinese who are not British subjects. It is possible that this bedy may be used by Leftist elements.
6.
Valuable seizure of documents has been made by the police in a raid en premises involved in Communist financial and commerical undertakings. These documents, which may throw light on Communist foreign trade plans, will be sent to you as soon as translation is complete.
7.
Ban on gold dealings effective from 15th May is tstill most unfavourably regarded by trading cemanity, who regard it as mistaken, Hong Kong dollar has depreciated somewhat in terms of sterling and U.S. dollar. Trade with Communist North China continues fairly brisk, mainly on barter basis.
8.
Tone of the Pre-Communist Press remains bad. Recently there has been great output of propaganda articles concentrating on youth movements, and determined drive in this direction may be expected. Generally, propaganda line en international questions faithfully followe Moscow.
Cepies sent to:-
Ministry of Defence
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J.K. Gerdinor.
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