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CIPHER TELEGRAM

181

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079438, 172

taxter soon F

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 paraphrad.) 1945

Recd. 261630 Oct 45.

From: C.in C. Hong Kong.

DTO. 250722 2.

To: War Office.

IMPORTANT.

218 cipher 25 Oct.

RESTRICTED.

For Civil Affairs and Colonial Office.

From Civil Affairs.

но

trace

Part one my 250722 Zea

Following is appreciation

of present situation.

Para one.

Banks opened local current account business October 17. At present receiving deposits totalling about 500,000 dollars per day.

Pàra two.: Supply bank notes running low but additional consignment expected soon. Cross rate Chinese national dollars with Hong Kong developing slowly in our favour. Present rate Hong Kong dollars 97 equal CN dollars

10,000.

Para three.

Gross rate Us dollars in local free market

offk dollars 7.6 equal 1 U.S.dollar probably indicates caution rather than lack of confidence by local Chinese.

19

Para four. Prices, continue very gradual downward trend

but lag in arrival supplies taxes to limit administrations powers of improvisation. Two months after reoccupation Hong Kong has received by way of supplies only 6000 tons of rice

and from Navy 4000 tons of coal.

Para five. Canton beginning serious agitation for

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/removal

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