SECRET
2
FOOCHOT & ALOY
Rear
Admiral T.P. LIU
CANTON
FORMOSA
Rear
Admiral Y.K. LIU
Rear
Admiral S.K. TIME
ну
3. LOCAL AFFAIRS
(i) A case of abuse of authority on the part of the Chinese Military Delegation has recently been brought to the notice of the HONG HONG Goverment, resulting in the arrest, by order of the Commander-in-Chief, of one LI KAR YAN.
On 21st October four armed men, led by LI KAM VAN, took over the KWONG HIF LUNG shipyard in the name of Capt. LING- CIDUNG PAN (an officer of the Chinese Ivy who is accredited to the Chinese Military Delegation) on the grounds that the shipyard formerly belonged to the Japanese.
A part-over of a boat called "SUNDY I" was interviewed by LI KAI TA who took over the papers proving ownership to the boat and asked the part-owner for $3,000 in consideration of releasing the boat to its joint owners. In the course of the conversation LI TAN YF is alleged to have informed the part-owner that hot10 K was Chinese territory and that the Chinese were entitled to take over all ships and property in KOLOON which had belonged to the Japanese.
LI KAM YAN subsequently saw the other part-owner of the boat, who told him that before moving over the $3,000 demanded, he must have a written document signed by Capt. LIG. This was refused by LI TAN YAN, who, on 26th October, informed one of the partners that General CHAN TGAU DUY had ordered the boat to be towed into Chinese waters. Meanwhile, the other partner had visited Capt. LING in the Peninsula Hotel, KOLOON, only to be told by the latter that he would attend to the matter upon production of the papers proving ownership of the boat, which had, of course, already been appropriated by LI MAN YA
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On 30th October the Commodore-in-Charge, HONG KONG, interviewed Capt. LIM, who informed in that the shipyard had been teken over by Chinese guards on the orders of General PAN. Capt. LINC was instructed by the Commodore-in-Charge to remove the guards and to place them on Japanese material only. Four days later, the Commander-in-Chief personally informed General FAN that he under- stood that the four armed men were still at the shipyard and asked why this was so. General I replied that no British guards had ret been forthcoming to take over from the Chinese, but upon arrangements being made for a guard to take over the sano afternoon, he agreed to remove his men.
Meanwille, on 30th October, LI KI YAT was arrested by order of the Commander-in-Chief on a charge of attempted extort- ion. General PAN was informed of the arrest and he agreed that the man should be punished if proved guilty of the charge. The present position is that LI KAI YAN has appeared before the Military Court and been remanded for a week pending further evidence.
(ii) Local land-owners at 1ING SEN continue to evidence the disfavour with which they view the construction of the new air- field, as reported in Weekly Intelligence Summary No. 6. In addition to returning their notices to vacate and petitioning the Government, they are now writing letters to the press and exhibiting posters in the neighbourhood, In the view of an officer who has worked with the B.A.A.G., these posters are typically Red" in appearance and composition.
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