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PRO/615/3
Lands transfer scheme should be implemented forthwith. Ün the question of right-hand or left-hand driving in the Colony the same paper was of the opinion that in view of the arguments put forward the Government is well advised to make no change at the present. However, the paper warned trans- port companies that eventually the change to right-hand driving must come and that they must face the cost. The "Morning Fost also editorialised on taxation and said that imposition of Liquor and meals tax and the heavy increases in liquor duties indicated that Government was not thinking yet of direct taxation. The paper said there were several valid arguments against direct taxation. In the meantime there was the problem of an un-- balanced budget. It concluded that the signs were the Pehabilitation Loan could not be postponed much longer. Foth the "China Mail" and the "Morning Post" commented on the border incident and both papers strongly criticised the political elements which were deliberately setting out to rupture Sino- Eritish relations on the slightest pretext.
LAD
3. Comments on Colonial Matters.
Nothing appeared in any of the newspapers under this heading.
4.
Comments on International Matters.
The Kung Shoung Daily News" said China could not agree to the draft plan for Japanes reparations which aims at conserving the majority of Japan's resources. The paper argued that materials left behind in China by the Japanese should not be regarded as part of the reparations, but only as part of the materials in restitution of the booty taken by the Japanese from China. The Kwer Vin Daily News" accused Russia cf attempting to incite dissension among the Chinese people. The left-wing Hwa Shiang Fao expressed the opinion that as America and Fritain were well on the way to forming a military alliance the paper was convinced as to the imminence of World War III.
SAG/APC
s.a.
Bray
3. A. Gray, P.R.O.
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