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If this is impracticable I can suggest no other

sure source of funds, although internal publicity in the

Colony might be handled through 'Rediffusion' as an alterna-

tive.

PUBLISHING.

The publishing of books and periodicals should also

be handled on a private basis, and as far as possible as a

paying proposition; I would make no rash assumptions as to

how far this could be made to pay, but the bulk of the expense

should be met.

Apart from magazines in Chinese, such simple and

amusing anti-Communist books as George Orwell's 'Animal Farm'

could be translated and sold in Chinese, as an example.

Students could be approached through an English-

Chinese weekly for teaching them English (or Russian).

FILMS.

I have seen some of the new Communist films. They

are good. Being a strong believer in the use of the film,

especially for illiterates, I would advocate a small but

active film set-up, also on commercial lines. Much use

should be made of 16 mm. films produced in the Colony, with

a wide range of appeal. They should include teaching pictures,

cartoons, news-reels, and if possible there should be co-

operation with Chinese concerns making features.

CONCLUSION.

Hong Kong cannot be held by force indefinitely if

the population is hostile. The Communist propaganda

Onslaught has already begun and must be vigorously met if the

Colony is to be saved. American friends of mine who came

with me from Shanghai think that the task is hopeless. do not share that view, but a good deal of effort and some money must be put in now if the situation is to be saved.

Yours sincerely,

(Sgd.) Leslie C. Smith.

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