CO537-5116 — Page 155

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FINANCE.

24.

(a) Station XNCR broadcasts on a frequency of 7496 kcs. at

14.30 hrs. G.M.T. and is directed at North America,

These broadcasts

(b) Station XCT broadcasts on a frequency of 8800 kcs. at

2000 hrs. G.M.T. and is directed at Moscow, are merely a repeat of the XNCR broadcasts.

The financial side of the business in the U.., from all accounts, has been, and is still a headache to all concerned.

25. In July, 1947, just after the Agency began its work, it was thought that it may have been financed by LEY ON, a wealthy Chinese restaurant- proprietor, who was a director of the CHIAO SHENG Company, of 17 Gerrard Street, However, the allegation could not be proved, and from later reports this seems inprobable.

26.

It was reliably reported that CHEN received approximately 350 in July, 1947, and another £250 in December, 1947, from Hong Kong, presumably for running expenses of the agency.

27. In February, 1948, Raymond WONG received from the same source the sum of £562, which was to cover expenses up to the end of March, 1948, In the same month, WONG was promised that with effect from April, 1948, he would receive regular installments of 40 per week without fail for all expenses,

28. In about June, 1948, these monthly installments ceased and WONG tried to raise the sum of $700 to cover expenses for the months of May to August, inclusive, evidently without success for in August, 1948, he stated that the financial position was "both helpless and hopeless",

29. In October, 1948, Raymond WONG was reported to have received 2,000 dollars from LIU NING YI (the money being sent via the U.S.A.).

30. It is reliably reported that in Merch, 1949, an overdraft of up to 400 was arranged by WONG.

31. It was I also reported in this month, that expenditure would rise from about £53 per week to about $60 per week, once the Agency had its own monitor.

RELATIONS BETWEEN THE NEW CHINA NEWS AGENCY AND THE BRITISH COMMUNIST PARTY.

32.

The London branch of the Agency is directed and controlled by the parent body in Hong Kong, and acts in the UK, as the mouthpiece of the Chinese Communist Party leaders. Both Jack CHEN and Raymond WONG are members of the Chinese Party, although they do not advertise this fact. There is, however, frequent consultation between these two and Jimmy SHIELDS, of the International Department of the British Communist Party, who acts in a sense as godparent to the Agency on behalf of the Chinese Party. Day-to-day questions affecting the staff of the Agency, in particular the position of Mary SHERIDAN-JONES problems concerned with the receipt and distribution of news, etc., are regularly brought to SHIELDS for advice and decision by CHEN and WONG, and the British Party encourages the circulation of the Agency's bulletin among Party members. The principal concern of the British Party has been to ensure, if possible, that the Agency should not be branded as an openly Communist organisation, so as to avoid any possibility of it being closed down by the British authorities. Mary SHERIDAN-JONES, for instance, was asked to resign her position as Secretary of a Party branch when she started to work for the Agency, and the Party likes

/to describe the ency

LOKET

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