CO537-5001 — Page 110

Typex

Reg. copy on 94007/35

INWARD TELEGRAM

Advance copy

TO THE SECRETARY OF STATE FOR THE COLONIES

2. Bpolad vullene.

***

FROM HONG KONG (Sir A. Grantham)

D. 12th May, 1949.

R. 12th

11.10 hrs.

No.434

Secret.

の

1

Addressed to S. of S.

Repeated by savingram to Commissioner General, South

#

健

East Asia,

#

#

Canten.

Governer Singapore, and

My immediately preceding telegram.

-on 94007/35

Hong Kong weekly intelligence appreciation for period ending 9th May.

There

it

Statement in House of Commons on 5th May on reinforcements for defence of Hong Kong has been widely welcomed and has given appreciable fillip to morale. is, however, still criticism that this is not enough; is pointed out that Garrison when reinforced will reach same strength as in December, 1941. Anxious speculation about Communist intentions continues. No unified resistence is expected in the South te delay Communist advance and there is

On general disgust over bickerings of Generals in Canton. 6th May I made speech at Hong Kong Engineering Society, keynote of which was that we must hope for the best but prepare for the worst. I also said that we hoped that it

This speech would be possible to trade with Communist China. was been widely reproduced in local Press and favourably commented upon.

2.

Refugees frem Shanghai and the Worth have been pouring in during last few weeks. Not surplus of entries over departures last month was about 40,000. Question of registration of the rationed population and of others who can prove residence in the Colony for a prescribed minigun period is now under urgent consideration. Registration in frontier areas and territories is to be put in hand very shortly.

3.

Conditions across the border remain bad and banditry is rife. On 6th securred particularly brutal murder of two European Felice Officers and one Chinese Police Corporal on Police Launch by two members of the crow who had

Launch was later joined the Police Force in December, 1945.

run ashore on Chinese side of Mirs Bay and arms and ammunition stolen. Affair was probably arranged by bandits with a view to obtaining arms and ammunition, though there may well be connection with Communist guerillas in the hinterland.

10

Internal situation including labour remains quiet. Recent arrivals in Colony include Tu Yuet Sen, the Shanghai

Tan Kah Kee, gangster-pelitician, who will be watched closely. well known Singapore Chinese, arrived on 9th May and has announced his intention to visit iberated' China to see Communism, to which he declares he is sympathetic, for himself.

/Huang Shao-Hsuing,

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