ENG-1947 — Page 7

The Governorship.

PART I

GENERAL

Sir Mark Aitchison Young, G.C.M.G., left the Colony on retirement on 17th May, 1947. His successor Sir Alexander Grantham, K.C.M.G., assumed duty on 25th July, 1947. Between the departure of Sir Mark Young and the arrival of Sir Alexander Grantham the government was administered by Mr. David Mercer MacDougall, C.M.G.

Relations with China and Macao.

During the year cordial relations were maintained with the Chinese authorities in Kwangtung, and friendly visits ex- changed. Before his departure, Sir Mark Young paid a farewell visit to Canton and Sir Alexander Grantham subsequently visited the provincial capital in August and November. General Chang Fa-kuei, at that time Director of the Generalissimo's Canton Headquarters, paid a two-day official visit to Hong Kong. at the end of September, and Dr. T. V. Soong, Governor of Kwangtung, was officially received in the Colony from 27th to 29th November. Successful visits were also exchanged between the Chiefs of Police of Hong Kong and Canton.

The Hong Kong Government, in order to develop the friendly relations existing between Great Britain and China, has shown sympathetic understanding of the difficulties and problems confronting China in the post-war period. In parti- cular, to assist China in dealing with the questions of smuggling and currency control, negotiations were entered into for the conclusion of Customs and Financial agreements. A financial agreement was concluded and largely implemented, and by the year's end the conclusion of the Customs Agreement was in sight. Under the terms of the Customs Agreement the Hong Kong Government was prepared to make considerable conces- sions to enable the Chinese Maritime Customs to operate in the Colony.

Close and friendly relations have also been maintained with the nearby Portuguese Colony of Macao, and official visits were exchanged by the respective Governors during November.

Departure of 3rd Commando Brigade.

It was with much regret and with gratitude for their splendid services in the restoration of law and order in the Colony that Hong Kong bade farewell in April of this year to the 3rd Commando Brigade. Since their arrival in 1945 they had performed many and varied duties with a staunchness, cheerful- ness and efficiency which commanded the admiration of all. In

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