0003160 G.F. 316
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were unable to learn much. The invited officials discovered that the dispute in their office had led to the intervention of the Police and military to restore order, and to the disgrace of the officer-in-charge and others in authority.
12.
There were during the month conflicting reports about the supply of foodstuffs in Kwangtung. However it seems to be the case that some commodities, notably grains, edible oils, fish and meat, were in short supply in Canton and other urban centres and also in some rural areas, but in other areas there were no shortages. There was no reflection of any shortages in China in the rate of the supply of foodstuffs from China to Hong Kong.
By the end of March supplies were running at a rather higher rate than in the same period last year. Chinese total exports to the Colony for the first two months of this year showed a considerable increase over the same period last year, totalling $488 million compared with $372 million. Some allowance, however, perhaps as much as 10% must be made for a new method of computation of trade statistics by our Commerce and Industry Department.
13.
China Resources Corporation, the principal export agency in Hong Kong for mainland manufactures and produce is having increasing difficulties in conducting business in chemical and pharmaceutical goods because of delays in deliveries. In some cases overseas buyers have been asked to extend the term of their letters of credit to the end of April. They are being told that the delays are the result of the estimated output for the first half of 1967 having been sold out already. Nevertheless, local left-wing newspapers continue to publicize the 1967 Canton trade fair due to take place between 15 April and 15 May.
14.
It has been clear for some time that the Russians have been attempting to establish themselves in Hong Kong in one way or another. It has been most evident in the frequent applications from journalists some of whom, such as the Tass correspondent in Singapore, have frankly stated that they wish to set up a news office in Hong Kong. In the last month or so the Russians have turned on the heat by using as a lever the possibility of substantial commercial advantage to the Colony if difficulties over visas could be resolved. The Hong Kong & Whampoa Dock Company which has over the years serviced a number of Soviet vessels has now been offered the bait of a contract worth about HK$6 million, for repair work on Soviet vessels which will provide work for the company for at least six months. As a quid pro quo the Russians have asked the company to put pressure on the Hong Kong Government not only to allow into Hong Kong to finalise the contract a group of Russians, two of whom are well known R.I.S. agents and to grant visas for other Russians to stay here for the duration of the whole contract, but also to grant visas to the Tass correspondent in Singapore and the Deputy Chief Editor of Izvestia, It is therefore quite clear that not only are the Russians prepared to use every trick in the game to establish themselves in Hong Kong but are prepared to be brazen about it. We can therefore reasonably assume that they have serious intentions towards Hong Kong and that these intentions are being given a certain amount of priority. In normal circumstances we would of course be m→ reluctant to allow the Russians to set up shop here but given the point state of Sino/Soviet relations it is quite out of the question that they should do so. We are all the less well disposed towards the Russians over this because of the articles which have appeared in various Soviet official publications in recent months, one of which at least suggested that the Chinese ought to have treated Hong Kong as the Indians treated Goa.
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/Military
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