CO537-5116 — Page 8

Bill inds final form

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54463/49

New China News Agency is no doubt one of the matters

to which the Governor would have to give serious consideration. (The draft Bill is behind (18) on 54463/49, Legal Advisers' suggestions for amendment are at (25), and (44) tells us that the final form of the Bill included most of them; but we have not yet had a copy of the final form it was asked for urgently in the last paragraph of (38).)

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In conveying prior approval of the proposed Ordinance it was not in mind here that it might be used against the New China News Agency. The Governor specifically mentioned disguised activities such as singing Dramatic Clubs as organisations affiliated to the Chinese Communist Party which would be affected by the Ordinance, but he did not mention the New China News Agency. As will be seen from paragraph 2 of (44), the New China News Agency is held to be a local society as defined in the Ordinance and if the Registrar is satisfied that it has a connection with an outside political organisation (of which he is not likely to feel serious doubt) it will be mandatory on him to refuse it registration and so render it illegal. Closing down will presumably follow automatically.

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It therefore appears that the criterion of whether the New China News Agency is to be closed down or not will not be (for instance) whether or not

engages in subversive activities, but whether or not it fulfils the technical definition of a society under the Societies Ordinance. This does not seem very satisfactory.

Subject, therefore, to the comments of Legal Advisers and Information Department, I think we might ask the Governor what the legal position of the New China News Agency is under the Societies Ordinance (mentioning that the Bill in its final form, asked for in (38), has not yet come); adding that if indeed it is held to be a "society" under the Ordinance it would seem, in view of What is said in paragraph 2 of (44), that it will automatically become illegal; pointing out that this may be held to be ±6) a less satisfactory method of dealing with

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Press Agency than basing action as is proposed in the case of the newspapers themselves - on definite sins of the commission; and asking for his further views before any action is taken.

5. As regards (c) above, see Sir Marston Logan's minute of 30/5, especially X. It is, I think, quite clear from this that there would be little point in our approaching the Home Office to consider the closing down of the New China News Agency branch in this country. On this we should simply tell the Governor that it does not appear that at present the activities of this organisation in the U.K. constitute a danger to the State and that, so long as this is the case, its closing down here is y unlikely.

6. Our reply will have to be cleared with the

Foreign