CO537-4849 — Page 15

3

Definite

newspaper men have also departed in recent weeks. information about the reactions of these people to the experience of Communist rule is lacking, but it is believed that a few of them have been somewhat disillusioned by their experiences of Communist Democratic freedom.

9.

*

In the economic field the general lowering of morale in Hong Kong resulting from Communist victories and the potential threat to the future of the Colony have been reflected in the local stock market where the turnover has been the smallest since the war. There has been a steady shrinkage in dealings over the past two months. The ban on dealings in gold effective from the 15th May, which applies to transactions in, possession of, and publishing information about gold, has contributed to the prevailing uneasiness. This ban, which was officially taken since the active gold market in Hong Kong had the effect of establishing few rates of exchange contrary to the obligations of the International Monetary Fund agreement, thereby weakening sterling against the U.S., has had a bad reception locally. Many Chinese have interpreted it as a protective measure to guard against devaluation of the Hong Kong dollar, which has lost some of its popularity in China. Sterling and U.S. notes have strengthened consid-

There are some erably as a result on the local market. indications in the left-wing press of a deliberate campaign

Another to destroy confidence in the Hong Kong dollar. effect of the Communist crossing of the Yangtze was an appreciable rise in the open market price of rice, but the price has since receded to somewhere near its original level. Prices of other local foodstuffs have also increas- ed, but have since recovered slightly.

in

On

10.

Labour during April was fairly quiet and there were no serious strikes. There was some slight unrest spinning mills and in foundries, with a few clashes with picketing strikers. But these were easily dealt with. April 17th and 18th the left-wing Hong Kong and Kowloon Labour Unions Federation held its first anniversary cele- bration. The Chairman of the Federation made a speech suggesting that the authorities had adopted the wrong policy and were inclined to oppress the workers. occasion for this comment was presumably the recent re- introduction of the Illegal Strikes and Lockout Ordinance, a measure which is considered necessary under present day conditions. Other speakers stressed the need for unity among Trade unions and the need for better education facilities and social services for workers.

The

In

11.

The Left-wing press during the month continued to become more out-spoken and intemperate in its comments, though there has still so far been ho direct attack on the Hong Kong Government. During the Peking peace negotia- tions between the Nationalists and Communists the three main left-wing daily newspapers, the Hwa Shiang Pao, Wen Wei Pao and the Ta Kung Pao, poured out a stream of attacks on the sincerity of the Nanking Government, who were accused of being a bunch of brutal murderers. this atmosphere it was not surprising that the peace

The successful negotiations did not result in success.

crossing of the Yangtze and the "liberation" of Nanking

Ch'iao Mu led to jubilant full page announcements. Director of the Communist Now China News Agency in the Colony, which furnishes the main diet of the left-wing press, gave a Cocktail Party with his wife at the Hong- Kong Hotel on April 26th to celebrate the capture of Nanking. A number of Hong Kong Government officials were invited to the party, but ignored it. Only left- wing newspaper men were invited to the party, which was attended also by left-wing artists, cultural workers and others.

An even larger celebration was held at one of the leading Chinese restaurants next day.

Page 15Page 16