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INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

FROM HONG KONG (Sir A. Grantham)

Simplex D. 4th March, 1952.

IMMEDIATE

SECRET

No. 187

Ro

4th

#1

tt

14.40 hrs.

Addressed to S. of S. Repeated

to Commissioner General,

Singapore, No. 59 and

by savingram to Peking, Tamsui, Tokyo, Manila, Bangkok (Sarawak, North Borneo via Singapore).

1.

Intelligence telegram for week ending 3rd March, 1952.

The disturbances which occurred in Kowloon on 1st March (see paragraph 6 below) have served to relieve the growing tension and apprehension which has developed among the Chinese population during the past two weeks in regard to the proposed 'Comfort Mission' from Canton. Public confidence has been greatly strengthened by the efficiency and restraint with which the police handled the situation and the view generally held is that communist elements in the Colony have suffered a very severe loss of face.

It is, however, also felt by more discerning observers that this may well compel the Federation of Trade Unions to make an early attempt to regain some of their lost prestige by provoking further and more serious demonstrations.

2. There is no change in dispositions or estimated strength in areas 'X' and 'Y'. Total remains 225,000 of which 93,000 are in area 'X'.

30

Six vessels left for China mainland ports during the week of which one was for North China.

4. The Colony's import/export controls have been extended to cover a few more strategic items. Large numbers of parcels containing strategic materials (mostly auto parts) are still arriving from Germany in transit through London and Hong Kong addressed to Macao.

5. Six small local banks have recently suspended their banking activities owing to lack of business.

0

6.

Towards the end of last week it was announced by Radio Canton in the left wing press in Hong Kong that the

Comfort Mission' from Canton would arrive on the 1st March. Extensive preparations to welcome it were made by all the left wing labour unions under the direction of the Federation of Trade Unions. On the morning of 1st March the latter were informed from Canton that the Mission's visit had been postponed but the crowds which had assembled at the Kowloon Railway Station were not given this information until the

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