TOP SECRET
Sir G. Gater.
Secretary of State.
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The S.0.E. Organisation keeps
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closely in touch with me in respe of their activities and operations in the Far East, and Colonel Taylor, a Senior Member of their London office, has recently come back from a prolonged tour in India and China where there were recently
important conferences between representatives of the British and United States
clandestine organisations and the American and British Military Commanders.
The British S.0.E. operations in S.E.A.C. territories, including Malaya, are smooth sailing and have achieved an advanced stage. In Hong Kong and Borneo, however, they are outside a British operational sphere, and their position is more delicate.
In Borneo, however, they have a close working agreement with S.0.A., which is the Australian counterpart. This position is facilitated by the fact that General MacArthur himself has something of a dislike of the American organisation 0.S.S., and prefers to use an ad hoc para-military organisation of his own in the operational areas of S.W.P. Command in which he is interested, viz. the Philippines, thus allowing S.0.A. a pretty clear field in Borneo, of which they have taken every advantage.
In Hong Kong there has admittedly been an unco-ordinated collection of activities by various British, U.S. and Chinese organisations, none of them very effective with the exception of B.A.A.G., which was originally organised from Hong Kong as a British organisation to
facilitate
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