CO537-4849 — Page 24

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"China Digest" which is published in Hong Kong. The se regulations were entitled "Provisional Regulations governing levy on import and export duties in Liberated Areas in Shantung." They were also published in the Communist-controlled Chinese dai ly, the "Hwa Shiang Pao."

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The decision announced by the Executive Yuan in Canton on 23rd February that WUCHOW on the West River had been opened to foreign trade and shipping has aroused considerable interest locally. This move, which seems to have been a gesture by the Nanking Government to gain favour with Kwangsi, has already aroused opposition by Chinese shipping interests who are always jealous of foreign competition. The Left-wing press in Hong Kong has also denounced it as a K.M.T. plot to sell China to foreign Imperialism. In actual practice it is not likely to benefit shipping in long Kong to any appreciable extent.

Recruiting for the new Hong Kong Defence Force began on February 14th. The response has not so far been very great, some 2,000, of whom about 10 percent were Europeans, having registered by the end of the month. standard of the Chinese applicants was reasonably satis- factory. There has been a certain amount of speculation and comment in the Chinese press on the establishment of a Defence Force at this time. The general line of comment is that Hong Kong, if Sino-British relations remain friendly, has no need to fear attack by a Communist China and that the Hong Kong problem will not be settled by violence but by diplomatic means. It is however appreciated locally that a Defence Force will be useful in times of internal trouble.

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The presence in Canton of a number of foreign diplomatic offices, has led to a number of applications by Soviet and "Iron Curtain" diplomats to visit Hong Kong, mainly for the purpose of making purchases of goods which cannot be obtained in Canton. On general security grounds it is not proposed to be accommodating to these applica- tions by representatives of countries whose policies towards His Majesty's Government are generally hostile.

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One event in the journalistic world of Hong Kong has to be recorded, namely the appearance of a new English- language newspaper, which began publication on March 1st. It is owned by Mr. AW Boon-haw the Chinese "Tiger Balm" King, who already owns a chain of newspapers in Malaya, Hong Kong and China. It rejoices in the name of the Hong Kong Tiger Standard. Mr. Au Boon-haw is believed in recent months to have had some contacts with Chinese Communists, and is also believed, as a result, to have directed that the general editorial tone of his newspapers should adopt a line more favourable to the Communists. this he is following the prudent but morally weak lead of some of his rich Chinese colleagues in Malaya.

In

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A Reform Club of Hong Kong, held its first meet- ing on February 25th. Its moving spirits are mainly European British in the Colony and its announced purpose is to press for a "reconstituted and revitalised legislature" and generally to promote interest in active citizenship in Hong Kong in view of the eventual institution of Municipal Government in the Colony. It is believed that a Reform Club may also be started by Chinese, though generally it is to be feared that Party politics in Hong- Kong will tend to follow the lines of Chinese Party politics rather than local lines.

C. b. B. HEATHCOTE-SMITH

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