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since they find the cost of living in Hong Kong too high for their limited resources. Although the net increase in the population since 30th November last is now just over 110,000, saturation point has not yet been reached. The water supply situation is satisfactory, and food and fuel stocks are adequate.

4.

Communist activities, on the surface at any rate, were not very obvious during the month.

The pro- Communist press however adopted a provocative attitude over the "Amethyst" incident and became more openly and passionately propagandist as the Communist victories in China mounted up. Similarly in the reporting of European affairs, an increasingly harsh propagandist note was evident and completely biased reports of the lifting of the Berlin blockade and of the meeting of the Council of Foreign Ministers were given. The pro-Communist press has shown a new tendency to criticise local internal matters such as the new Societies Ordinance (see paragraph 6 below). There was increasing comment in the Communist press on events in Malaya, while American "imperialism" came in for the usual attacks. TAN KAH-KEE, the well-known Singapore Chinese "philanthropist and "liberal" who is sentimentally attracted towards Communism, arrived in Hong Kong during the month, and left eventually by sea for Tientsin, having received a personal invitation from Mac Tse-tung to see for himself how wonderful conditions are in "Liberated" China.

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5,

The localpress, both British and Chinese, is giving considerable attention to the movements for consti- tutional reform which are advocated by the predominantly European Reform Club and the wholly Chinese Reform Associa- tion. There has been criticism by these two bodies of the Municipal Council scheme as not being a sufficient step in granting self rule to the Colony, and more extreme elements have advocated an enlarged Legislative Council, the members of which should be "democratically" elected by a very wide franchise. British and Chinese have engaged in rather harsh public debates over the right of Chinese who are not born in the Colony to have any voice in the election of members and this has created a certain irrita- tion and feeling of injured nationalist pride on the part of certain Chinese. This interest in constitutional reform is a healthy sign, but the danger of Left-wing or Nation- alist groups seeking to turn the emotions aroused to their advantage is being watched. The Municipal Council Bill was published on June 3rd. This will give the public something concrete to think about and may still for a time demands for more extensive constitutional reform.

6 •

The new Societies Ordinance became law on 27th May. It is in line with the legislation now being adopted in the Federation of Malaye and makes registration compul- sory for all societies. In particular it is designed to prevent the registration of any political parties which have outside foreign affiliations. The first reaction of the public was that the new Bill was aimed at the K.M.T. which is the only large Chinese political group ostenta- tiously maintaining an office in the Colony. Left-wing "democratic" groups showed considerable signs of uneasiness and their reaction has now been crystallised in an editorial which appeared on May 29th in the pro-Communist Wen Wei Pao, openly attacking the Societies Ordinance as being unnecess- ary and creating difficulties for future Sino-British friendship, as well as being "undemocratic". The Communist radio in "Liberated" China has taken up the hue and cry on similar and more violent lines. The criticism by the Wen Wei Pao is the first flagrant instance of intervention of the Left-wing press in the domestic affairs of the Colony.

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