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ememy" goods, but the movement is not taken seriously
and with the collapse of the new Communist riovement this
gang of patriot profiteers will no doubt fade once more
from the scene. Indeed, so far from planning any fresh
hostilities against Hong Kong, the Canton authorities,
or some of them, have sent an aviation expert to investi- gate the possibility of importing aeroplanes through Hong Kong "for the suppression of piracy". I need not
go further at present into the real objects behind this somewhat curious proposal, which would of course not be entertained without your prior sanction. But the incident is worth mentioning as a proof of continued friendly
contact with Canton.
ENCIO.NO. 37.
•
I am glad to be able to report that the new
no super-surtax, mentioned in paragraph 5 of my last despatch
has been abandoned, anyhow so far as foreigners are con- cerned. The Commissioner for Foreign Affairs has covered the cancellation of this piece of aggression by a state- ment to Mr. Brenan that no tax was ever intended but only a voluntary contribution to a "lottery loan" which appears to mean some form of premium bond. Such bonds will of
course be quite valueless.
8. I enclose reports by the Assistant Superintendent of Police, New Territories, dated the 16th and 23rd Octo- ber, on the position in the neighbourhood of the British frontier. The disarming of General Wu Him is interesting. With his elimination the last of Marshal Tseung Kai-shek's
g
no7and commanders disappears from Kantung (see Governor's ENCIO.NO. 4 secret despatch of the 29th July). I also enclose for
※
your information a translation from the Hah Kiu Yat Po,
Hong Kong,
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