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Copy.
Enclosure 2.
To the Honourable
Colonial Secretary,
jote,evaní I
,ebé erstnok .0 (58)
unetuḍ ydini!dı¶nseren
Lening Nowo8 Tot
Sir,
PRESENT.
321
Hongkong, 7th October, 1921;
With reference to your letter No. 3554/1917
of the 9th September, I have the honour to enclose an account
of the Receipts and Expenditure of the Publicity Bureau for the year 1920, and for the present year up to the 14th September:
The balance in hand at the end of 1920 was $61,446;67, while on the 14th September the balance waB $66,958.00: this does not, of course, include the subsidy for the first eight months of the year which has not yet been paid and which amounts to $40,000.00.
Propaganda is a matter which before the War was very imperfectly understood. During the War, all countries awoke to the fact that it was of the very greatest importance, General Ludendorff was probably a good judge of what was lacking in German organisation, and in a report to the Imperial Chancellor dated 20.3.18, he discusses the question of the importance of propaganda. He points out that in England, Lord Northcliffe will devote himself to propaganda with ruthless energy, and later in the report, recomends that an Imperial Ministry of Propaganda should be appointed to counteract the efforts made by the Allied Powers.
Then the late War broke out, it is doubtful
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if any person in Hongkong could have placed an inspired article in any of the vernacular papers. We believe that we could now place an article in some 38 papers. Press
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