CO129-611-2 Liaison with British Embassy and consulates in China- appointment of political advisor 1-9-1945 - 20-10-1947 — Page 164

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British Authority. This process is now discernable and the following points are worthy of note as indicative of what is ahead:

(1). General an's Mission his attitude towards surrendered

Japanese equipment and his request for loans of money. He appears to be loving into Hongkong on a grand scale.

Central Government and Communists Forces operating be, ond or in the New Territories. These problems show how easy it is for Hongkong to become involved in China's domestic wifficulties and ir either side loses Hongkong is likely to get the blame.

(2).

(3).

Iniltration or Chinese oficials to Honkong, Chinese Ministry of Information, and many more.

All these questions need skilled handling and that skil.. can only be found in men who now China as well as they know Hongkong. I urge therefore,

(1).

(2).

That the office of the Secretary for Chinese Affairs should make it. elf conversant with the present situation in China so as to be in a position to advise the Government on Chinese problems. The services also may require guidance on their political relations with Central Government and Communist Forces.

That it is essential that immediate and permanent contact be made with H.M. Ambassador in Chungking and in this connection it is worth considering that a Foreign office Official should be aointed to serve in the Office of the Secretary as an International link.

There

(a) I believe that the Colonial Office and Brigadier MacDougall are in agreement with the General principles I have expressed. is however some difficulty in reaching a decision as the present "s.C.A. has been in internment by the Japanese. I consider, however, that

priority should be given both to filling the office of Secretary as soon as possible and of establishing a permanent link with the Embassy in China. The importance of ensuring that there is no rale step in Hongkong's delicate relations with China end of watching world opinion is as great as any of the day to day problems of rehabilitation of life of the Colony.

In conclusion, my recommenuations are that:

(1).

(2).

.(ث)

More attention be paid to "external" affairs by which I mean Hongkong's relations both with China and with other countries.

In ruture there should be a Secretariat for Chinese and External Affairs and that within this organisation there should be an expert on mouern China with the closest liaison with H.M. Ambassador in China. This should be either the Secretary himself or a new appointment.

A decision be reached in the very near future to appoint a new Secretary and that the functions of his office be recognised as including (1) and (2) above. This is necessary because of the increasing contacts of Hongkong with Chinese and American Forces and the delicate position in which Hongkong finds herself internationally.

HONG KONG

24th. september 1945.