INWARD TELEGRAM
TO THE SECRETARY OF STATE FOR THE COLONIES
Cypher (0.T.P.)
Orig.
on
94001/35749.
FROM HONG KONG ( Sir A. Grantham)
D. 19th November, 1949 R. 19th
11
11
09.20 hrs.
4
101
PRIORITY
No. 1237 Secret
Addressed to S. of S.
Repeated to Commissioner-General S.E,
Asia No. 345
TP
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British Embassy Bangkok Consul-General Canton
11
18
ભા
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U.K. Liaison Mission Tokyo
British Legation Manila Governor of North Borneo by
savingram,
Hong Kong Intelligence Appreciation for
week ended 16th November.
Situation generally quiet and public morale steady. Some uncertainty is felt owing to confused and conflicting reports about timing or recognition of Peking Government by H.M. Government. Present Communist attitude towards Hong Kong remains one of non-interference, but events such as Chinese Air Lines defection (see paragraph 9 below) may force them to take more active interest.
2.
Unconfirmed report received of arrival of a further 200 irregulars in uniform in border area, possibly to assist in an attempt to prevent smuggling. There are however no signs of a build-up of regular P.L.A. forces east of Canton. Former East River guerillas are reported under (corrupt group - ? absorption) into regular units. Communists have occupied San Chow Island but majority of Communist forces previously reported opposite to the Island have been withdrawn and are thought to have moved further west. It is still thought there is no immediate threat to Macao.
3.
Parades were held in Canton on 11th and 13th November to celebrate liberation of Canton and anniversary of Russian October Revolution. Marked lack of enthusiasm on the part of the civilian population. Parades included artillery and infantry with large variety of weapons. All ranks appeared well fed, fit and cheerful. Canton still suffering from lack of administrators, Crime rife owing to disarming of police. Business reported almost dead. Some Hong Kong press reports of impending rice shortage there.
4.
Communists have advanced down Luichow Peninsula and it is thought most of the Nationalist forces have moved to Hainan. Communists claim to have penetrated outer defences of Wuchow and city is possibly in their hands.
5.
Forces moving up from Wuchow are developing rear threat to Kweilin. Kweiyang is reported to have fallen and a further thrust has developed in north westerly direction towards Tsun-i on Chungking Kweiyang Road. In conjunction with this move, Communists advancing south west from En-Shih have
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