CO129-579-10 Sino-Japanese War- quarterly reports of Japanese activities 25-1-1939 - 1-2-1940 — Page 44

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excuses. The local OSAKA Mainichi Group representative was

recently notified by his head office that "Hong Kong is likely

to lose its value" and it was therefore decided to open a

new agency in Canton. The same group recently distributed

over 100 newly recruited English speaking Japanese reporters

to cities in China. A Japanese propaganda newspaper in

Chinese called the "Kwang Tung Sun (Quick) Po" is being

published in Canton. it is discovered that secret reports,

concerning Chinese Military, trade, war materials, movements

of British officials, currency problems, etc., are being

sent from the Hong Kong branch of the Bank of Taiwan to a

Mr. ISHIKAWA somewhere in Tokyo; one report includes

"present conditions in Canton" as found by TCNEGI, the

Vice-Consul at Hong Kong, who is South China chief of the

Special Service Political Department and who is apparently

known to his agents in Nanking and Shanghai as Mrs. JOHNSON,

and likewise the Hong Kong Japanese Consulate's Eurasian

agent, RICHARD, is addressed as Miss S. U. YUNG.

A new

Japanese economical and political espionage concern is the

FUK TAI Company (FUKU TAI KOSI) whose representatives have

visited Hong Kong. The Company is operated from Formosa and

engaged in investigation work under cover of development and

is believed to be a subsidiary of the Formosa Development

Company, which, according to several reports, expects to

control the development of South China. The FUK TAI is also

apparently a sister society of the KOCHU KOSHI (China

Development) Company, which concern operating from Tokyo,

did the espionage ground work in South China before the

present hostilities. The KOCHU KOSHI still has two idle

representatives in Hong Kong who are not sure whether the

concern will be disbanded or confine its operations to the

North. Two Portuguese residents of Macau are signalled as