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Fermits have been issued to 309 fishing Junks which operate locally. The total number of craft holding permits is continual.y increasi .. In 1940 permits were is.ued to approximately 23,000 water craft of all types.
The small coasters "ROSE and CONSTANCE" are trading to MACAO and CANTON. Others will engage in this trade shortly.
10. SPECIAL APFENDIX
THE FOLITICAL SITUATION IN CHINA.
The veil of official secrecy covering the KUOMINTANG COMMUNIST negotiotions in CHUNGKING was raised slightly through a CHUNKING report which s ated that the negotiations have led to a decision to ret rn an all- party political co ncil with broad powers to deal with outstandin questions. The two vital and outstandi.g proble as are the Con i ist armies, estimated at about 450,000 men and the control of the Communist-dominated provinces in North CHI'.
The negotiations form an attempt to fi d a solution to these questions and thus ease the tension, which had been increasing to such a pitch, that immediately before the Japanese s rrender the spooibility of civil war in CHINA was openly discussed. Clashes became more frequent and at the time of the Fotsdam Conference, great pblicity was given by the Communists to an incident at YEHTAISHAN in SHENSI, probably in a. attempt to influe.ice the Big Three and also to prevent T.". 0000 winuin over FUSSIA to the CHUNGKING side during the Moscow negotiations. The attempt failed and le subsequent agreement between the J.S.S.. and the National Government weakened the Communist position considerably.
On the Japanese surrender, MAU TOE TUNG, the Cominic leader a reed to fly to CHUNGKING and confer direct with CHIA KAJ SHEK. After a month of conferences the only concrete results are an asurance by the two leaders, that under no circumstances will the precipitate civil war and an agreement to set up the All Farty Folitical Council. The vial iss'les remain unsolved.
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