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20.
The first soundings have also been made with reference to air facilities for American companies planning to develop routes in the Far East. It is to my mind absolutely essential to the future of Hong Kong as an air junction that it be removed from the sphere of reciprocity bargaining in regard to air facilities. At Canton, less than 20 minutes flight distant, a more spacious airport already exists than any that it is possible to construct with the narrow confines of this Crown Colony. The Chinese will try very hard to induce world airlines to make their terminals there, connecting with Hong Kong by means of subsidiary feeder lines only.
21.
The matter is for Hong Kong one of major policy. Our task, as I see it (as, I believe, anyone must see it who experienced the Pan-American negotiations of nine years ago) is less to decide whether and on what terms we shall or shall not admit foreign air-lines to the colony than to try to persuade them by all means in our power to come in and use our facilities at will.
22.
Relations with Canton and South China, as experienced at first hand, give rise to some anxiety. The policy of limitation of entry of persons into Hong Kong, which is imposed as a result of lack of supplies, has caused resentment. General Chang Fa Kwei, the effective commander of South China, has chosen to regard it as an insult to "honest Chinese merchants": expressions of his private irritation over delay in permitting resumption of the anachonistic operation of the Chinese Ministry of Communications in the colony have also been conveyed. privately to us: and there have been several misunderstandings in regard to requisite notice having been given for British planes to land in Canton. There are other instances of friction also, all of them, like those quoted, of a minor nature. The expectation is that very great tact will be required when points of real dispute arise.
23.
Unfortunately Admiral Chan Chak, the Mayor of Canton and a convinced advocate of Sino-British cooperation, is greatly outweighted in the sense of political power and influence by General Chang. The Admiral's presence in Canton is, however, of great value, and there are few visitors from that city who do not convey from him private messages, quaintly worded, to assure us of his continued efforts to maintain and expand the cooperation essential to mutual prosperity.
24.
General Festing and myself have both paid flying visits to Canton and been warmly received. Jam convinced from what I have seen and heard that many people in South China have been under the impression increasingly since 1942 that Hong Kong would pass to China on the defeat of Japan. What we are experiencing now (and there is no need to take it too seriously) is the reaction provoked by the actual course of events. The British fleet sailed in, and instead of leading a victorious Chinese army (with American planes and equipment) to Kowloon, General Chang still sits in
Canton.
We must expect pin-pricks for some time to come.
Two major problems immigration control and the investigation of quislings and collaborators - have been of the nightmare variety. Lacking even a percentage
25.
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