893.00/8–1149: Telegram
The Consul General at Hong Kong (Hopper) to the Secretary of State
[Received August 11—9:52 a. m.]
531.… Source reports Communist military and political chief South China Fang appears to have departed for interior [to] contact forces now advancing from north. Yeh Chienying67 reportedly commanding offensive directed against Canton, with Fang probably subordinated to him after fall that city which Communists expect take by 1 September. Communists wish expedite capture Canton [Page 481] [to] circumvent coastal blockade and also wish announce this prior or immediately after convocation PPC68 Peiping. Meanwhile various important functionaries for new Canton administration assembling Hong Kong for entry their new posts.
Communists apparently unwilling negotiate peace Kwangsi leaders short of acceptance unconditional surrender. Their present campaign in south includes destruction Kwangsi armies and occupation both Kwangtung, Kwangsi. Thereafter plan move against Szechuan.
Some evidence suggests ships successfully running blockade from North China ports, possibly by bribing Nationalist guard ships. While total this traffic unknown, believed relatively small. Most British firms Hong Kong reportedly eager resume trade with North, and pressuring their government take necessary measures get trade started.
Extent Communist activity within Hong Kong difficult ascertain, but probably mainly along lines organizing among labor unions. While Communist propaganda organs active, Hong Kong Government and British authorities never attacked. Indications suggest Communists have no immediate intention [garble] or military move against Hong Kong.
Communists have taken over bulk of political and military organizations in Kwangtung formerly belonging Li Chi-sen.69 Some former followers Li now appearing as CCP agents. Li believed not coming south after formation coalition government as once expected.
Sent OffEmb Canton 55, repeated Department 531, Nanking 41, Shanghai 114, Peiping unnumbered.