CO129-592-6 Reports on current situation- including weekly intelligence reports 18-9-1945 - 20-12-1945 — Page 23

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6. One nightmare is labour trouble, of which up to date we have been singularly free. Our motto here continues to be that prevention is better than cure, and we have used all our means to provide employment and relieve distress.

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So far all is well, though I touch wood as I write. We have employed a large number of Japanese prisoners of war who, of course, are much fitter than the local coolie and work much better, but we have carefully avoided employing them in a way in which we could be accused of taking the bread out of the mouths of local labour.

7.

Every attempt is being made to hold relations with Canton on a satisfactory basis. The Mayor of Canton, Admiral Chan Chak, who has one leg and a K.B.E. and is very much our friend, is most helpful, but he is really overshadowed by the Army Commander, General Chang Fa-kwei, whom we are still finding very difficult. He has a reputation for being anti-foreign, but we are not without hopes of getting better relations with him.

8.

The Civil Affairs team with which you provided me has done extremely well. I confess that when it arrived I had considerable misgivings owing to the large proportion of retired officials which were included. I am glad to say, however, that I have been proved entirely wrong. McDougall has done most awfully well. We at present have only about 20 per cent. of the requisite staff and they have all had to work extremely hard. I am endeavouring to make them take sufficient days off so that they do not break down before we get sufficient staff for them to stick to more reasonable working hours.

9. I would say without doubt that Hong Kong's future looks bright, and that the number of those who advocate its return to China daily grows less, but our every action is carefully scrutinised and we need to maintain a high standard in all respects to keep the position that we have so far attained.

Yours sincer

lent bercours

The Right Honourable George Hall M.P. Secretary of State for the Colonies.