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shek form of propagania.

In one of the first issues the

local congul-Jeneral for Italy sent a message of congrat- ulations to the paper, an extract from which read as follows at last we have an independent newspaper in Hong Kong worth reading and not a newspaper which is a tool in the hands of the international Jewish bunkers".

3. Colonel ISHI) and his staff of attendants" have moved

the so-called Military Chamber" from Conluit Road to Calder

uth, the reason for this shift not yet being apparent.

(11) Lt. Col. OHIRA and Raval comander 3.A contime to pay frequent visits to the colony from Canton.

(iii) There has been a sudden increuse in the mumber of Japanese Naval and Military officers visiting Hong Kong recently.

4. During the early hours of 16.8.39 Japanese troops in large mmbers occupied ghun Chun as well as all the villages along the frontier and their forces were so formidable that speculation existed as to the real intention of the Japanese occupying shua Chun for the second time since last November and there were rumours that the move was the first step towards blockading and encircling Hong Kong due to the alleged transportation of arms and munition across the frontier to the hinterland. In spite of this, however, it was noticed that there was no gulden exclus of local Japanese residents as was the case with Chinese ani quropeans. 5. on 17.7.39 the Japanese gunboat "SAGA" arrived from Canton with OKAZAKI the consul-General who was believed to have made the trip for the purpose of discussing urgent business with TAJIRI, the Hong Kong Consul-General.

6. A considerable decrease in the number of Japanese off10- ials coming to and passing through the Colony has been notice and local Japanese residents' movements in and out of the Colony have algo decreased. The local Japanese population still remains the same, i.s. approximately, 750 aɖults,

R. 5.10.39

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