10 October 1949
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Annex II ta
JIC (FE) (49)41(Final)
Finance
15
Information so far available on C.C.P. finance in Hong Kong indicates that there is no shortage. Not only is money cbtained through business enterprises, but voluntary contributions are provided by left-wing sympathisers. Much of this money may not go directly intc Party funds, but is probably used for the activities of crganisations through which C.C.P. influence is exercised. As a rule Communist business undertakings, beck shops and so forth, are expected to run at a profit. There have been repeated reports of undertakings like the Hwa Shiang Pac and its allied publishing and printing business being in financial difficulties. They have never. however, been allowed to close down. Mrney has always been forth- coming from some quarter.
16.
The HO Kai-ming documents and ther scurces show that the proceeds of taxation in the East River areas controlled by the Communist guerillas are banked in Hong Kong and used for the purchase of supplies for the same areas. More recently C.C.P. Victory Bonds have been on sale in the Colony.
17.
There is, too, circulating in Kwangtung a very large quantity cf Hong Kong bank-notes. Should the C.C.P. succeed in laying hands on these and other negrtiable currencies, a very considerable addition will be made to their financial power in the Colony.
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