4
1. Since I wrote my minute of 24/4 it has become clear that the shelling of our warships on the Yangtse on the 20th has had important psycological effects in Hong Kong, both on its British and on its Chinese inhabitants. What might have been said before these events and their effects it would be unwise to say now.
2. The Yangtse incident has shaken the British in Hong Kong by showing that the Chinese Communists are militarily more dangerous than any Chinese we have hitherto had to deal with and it has lowered British prestige in the eyes of the Chinese in Hong Kong. The net result is a marked increase in the feeling of insecurity of the British community in the Colony. They feel more than
keg before that they are sitting on a powder dake, which may go off suddenly in strikes, disorders and acts of terrorism. In this atmosphere it would, I think, be difficult for the Governor to introduce any amendment to this Ordinance which would have the effect of weakening it, and, in the special circumstances, I do not think we should ask him to do such a thing. I have drafted from this point of view.
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