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CIPHER TELEGRAM

This message will not be distributed outside British Government Departments or Headquarters or re-transmitted, even in cipher, without being paraphrased. (Messages marked O.T.P. need not be paraphrased).

074178

F 7272

2015 22

22501 Septem45

FROM:

C. in C. Hong Kong.

DATE: 18.9.45.

RECD:

0640

C.C.M. (NAVAL) F. O's Secret by W/T

ADDRESSED: Admiralty for Chiefs of Staff.

IMPORTANT

The broad picture of the present position is as follows

Pare. 1.

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

To

Fara. 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. date currency change over quieter than expected though some protests beginning to be voiced, particularly concerning slowness of circulation. Public relief on large scale may be necessary pending fuller circulation of new notes.

Para. 3. Trans, 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.

Fara. 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.

until import of merchandise possible.

Difficulties and problems likely to mount

Pare. 7. Food reasonable and stocks of rice will last another ten days. Fuel and firewood situation most grave.

Para. 8. 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.

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