CO129-592-6 Reports on current situation- including weekly intelligence reports 18-9-1945 - 20-12-1945 — Page 78

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11. CHAL

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DIX

SULLAT OF DIE OLIFIC A SINION I JIL

JOLLUTIOUS DIT OTIR

yve

616 0117 poono ip Cortinato 1 by the Got Farist problem. CHI TO VII-V DD's indiate immioty is to get Lis troops at once into cr、 a fre, from Japanese control so s to forestell Comunist entry; hunce troo roverents everyvero. KWA:Q31 Troops now being transferro? fron (OM 100G by troo ships are destined for linelui. DO CITATC Communist ne. eo conference is ro, arded by nk my na o tirk-guining Device, It is not in the Communist interest to challone CTECKLA to n :ilitry slot-down,uince 01 JO KT- "I would probe bly „Ateric a and Britagli spanently. On the other hand it is in CHONG MAI-BIK's interest to dim ergo the Communists before ther entrench themselves too wid.ly d leerly; but as will be rostr. ined by consider hims OJ SL. d by unfavourable world- wide rection to another civil wr. It is doubtful whether M MINCTON or LONDON would ercourage such retion since it night provido a burg ining point for STALIN. Prospect of nore thin a comproniso in C'IMA dolls hopcluss as long is the Corricts (a) want a large city and (b) insists on autonony in their ow! NICUS.

(ii) HELATION IN CRIM

Issue of 1,000 Chinese tion1 currency notes a few Teks ngo ludiccted that inflatin în CT ten not boen halted despite the sulful end of the war. IN C NTON there is now considerable discontent anong, the p200 le bec use prices continue to jump despite the rbolition of the puppet motes, the so-called Centr 1 Reserve Bank motes, in favour of the I (thornse

P.I° norm us Chinere national curency). Chim. is now using all ships to transport troops with the result tht few are left to nove goods from roducing centres to the bigger cities, such CAITON, etc.

(iii) CHINESE ERSOYALIVIS.

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Politically the strong grow in CHUCKIT is the 7.7. Soong clique which has the biggest pull in financial circles The brother-in-law of CHIANG KAI-SEK, 20ONG 17s out of favour vit the Gener lise ino for some yours before the war, but he roturned to becone CHIFA's Foreign Minister cad later 3 Premicr taking the place of Dr. H.H. KUNG, who, incidentally, is also a brother-in-law of CHIANG KAI-OVEK. Dr. SUN TO, cones secon because of his friendship with RUSIA,

CARRON'S Commander-in-Chief is General (ITANG FAZ-KUAI, better known as the Ironside sorvinder boc use of the fighting nol:ievement of his troops during the early vorrs of the KUOIHIN WING rogine back in 1988 or thereabouts.. CL TONS Governor is General LO CIZTUK-DING, Cantonese and trusted member of the Chiang clique.