FO371-46255 — Page 261

M.5337. P105 1500 pads. 4/44. C.B.&S.Ltd. 52-6429.

Page 261

SECRET

From C. in C. Hong Kong

RECEIVED:-

IN

DATE 18.9.45

sedr2? by W/I

TIME

0640

C.C.M. (NAVAL) F.O's Sedret by W/ 1945

WARNING: This is an unparaphrased version of a secret cypher or confidential code message, and the text must first be paraphrased* if it is essential to communicate it to persons outside British or Allied Government Services.

[*NOTE: Messages shown as having been sent in a One-Time Pad ("O.T.P.”) are excepted from this rule.j

Admiralty for Chiefs of Staff

Addressed

IMPORTANT

The broad picture of the present position is as follows

Paral. Colony is quiet but in view of strong patrols maintained throughout the city it is difficutl to judge genuineness of atmosphere. Population estimated soon to reach one million relatively healthy and adequately clothed. Good proportion shops opended though stocks small and prices bound to rise on scarcity value. Doubtful if state adequate

to enforce price control is practical proposition.

Para 2. Too early to judge yet success or otherwise of reintroduction of Hong Kong dollar and demonetisation of the Yen on 14th September. Problem is to achieve reasonable

circulation and prevent outflow of notes to China. To date currency changeover quieter thanexpected though some protests beginning to be voiced particularly concerning slowness of circulation. Public relief on large scale may be necessary when detailed reports are available.

Para 3. Trams, ferries, telephones, newspapers and electricity working on limited scale and cancellation of proportion equipment previously asked for in United Kingdom will be necessary when detailed reports are available.

Para 4.

Water supply fairly good shape though filters have been fouled through lack of maintenance. Docks are damaged but not to extent reported in 1944 and a great deal is working now.

Para 5. Damage to property and housing seems to average about 15% over all though some districts have sustained as high as 60% through combination of bombing, fire and looting.

Para 6. Business at a standstill. Difficulty and problems likely to mount until import of merchandise possible.

Para 7. ten days.

Para 8.

Food reasonable and stocks of rice will last another

Fuel and firewood situation most grave.

Population in general seems glad to see us back and harbour filled with British warships gives obvious pleasure but we must bring much more than ability to maintain order if our welcome is to endure. Difficult times lie ahead.

Para 9. There are four times as many chinese flags as British displayed in the City.

Para 10. Chinese civil servants beginning to report for duty i in fair numbers. A few grant aided schools have been opened and more are expected by the end of the month.

Page 261

/Para 11..........

Page 261

Page 261