CO537-6578 — Page 24

Saving No. 135 Top Secret of the 13th October.

and

In the first place, you will see that the U.S.I. S. is

causing embarrassment by distributing magazines and

pamphlets in Chinese not only locally but in China,

that Messrs. Goodfriend and Hudson have made it clear that

the U.S. I. S. wish to use Hong Kong as a base for further

distribution of such material into China. This does not

accord with the spirit of the 0.A.G.'s proviso that the

activities of the U.S. I. S. in Hong Kong should be confined

to the publicising of American Institutions and the

exposition of American policy by overt means. It looks to

us as though the American authorities still do not

appreciate the peculiarly delicate position of Hong Kong,

in spite of the explanations given to them by you last

May and we should be grateful if you would explain to

them again that it is not our policy that Hong Kong should

be used as a base for propaganda to China and that

categorical instructions to this effect should be given

again to the U.S.I.S. in Hong Kong. In passing, you will

no doubt note from paragraph 5 of the saving that

Liny day

Mr. Hudson, the Director of the U.S.I.S., could on

occasion behave with more tact. I do not want to press

this point, since the 0.A.G. has already taken it up with

the Consul General, but it does perhaps throw additional

light on the causes of this unsatisfactory situation.

Secondly, it would appear from paragraph 1 of the

0.A.G. 's saving that the U.S.I.S. China Office retains a

skeleton organization in Hong Kong. For the reasons given

in my last paragraph we consider that the maintenance of

this section in Hong Kong is most undesirable and I regret

that I must press you to indicate to the Americans that

the members of this organization should be withdrawn from

as soon as possibles

Hong Kong since it is obvious that they are superfluous

for the purpose of publicising American institutions in

that territory.

ऐ

(5)

(para. 2 of (47))

(4A)

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