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of 1840
5.
On 26th January, the Macao Government introduced further centrols over strategic materials. Translation of official notification is not yet complete.
6
From information so far available, it appears that some fifty local business firms closed down at the New Year settlement, being unable to meet their
g
commitments.
This number was not as large as had been expected, but the situation is not yet fully known. General shortage of money in the Colony was apparent at the traditional New Year's Fair, when the volume of purchases was remarkably low.
17
Situation in tramways dispute remains, in general, as reported last week. Our information is that instructions have been received from Canton to avoid strike action, and other drastic measures, for the time being. This probably means that it is desired to develop labour agitation, on a broader basis, among other unions in the Colony before the next major step is taken and that it is felt necessary to restrain the hotheads in the Tramways Workers Union meanwhile. There is no doubt that the Left Wing campaign is carefully planned and under very skilful direction.
8.
Latest development in the recent squatters fire (para nine of my telegram No. 83) has been the issue of free rice to the alleged victims, in the name of several "democratic organisations" in Canton, accompanied by distribution of pamphlets declaring the deep sympathy felt for these people in the Chinese mainland. These relief activities clearly have political inspiration and may, if continued, result in disorders requiring police intervention. The situation is potentially explosive and will need very careful handling.
да
Apparent balance of departures over permitted entries 4,288. There has been some diminution in propaganda attacks on the Colony over loudspeakers on the Chinese side of the frontier. General border situation unchanged.
Copies sent to Foreign Office Bag Room for despatch to
Washington.
Hong Kong Weekly Intelligence Report External Distribution
Sent.
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