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SECURITY 1NF ORMAT Y BRITISH EMBASSY, LISBON. 22nd February, 1952. SECRET My dear Dean, I mentioned to you this morning the serious effects of strategic trade controls on Hong Kong, and promised to let you have a Note setting out the problem. I now enclose an extract from a Note supplied to me by the Secretary of State for the Colonies, which describes the situation. As I emphasised this morning, I think there are undoubtedly arguments on both sides in this matter, and I do not want in any way to suggest that it is a one-sided affair. Until I saw you this TRUMAN morning, 1 had understood that there was virtually a is NARA complete embargo on trade with Hong Kong. This has had a very serious effect on both the trade and industry of Hong Kong, and has resulted in considerable unemployment there. There is a risk that if this increases, the working population may become a target for Communist agitators./ The Honourable Dean Acheson SECURITY INFORMATION DECLASSIFIED DECLASSIFIED E.O. 12065, Sec: 3-402 E.O. 13526 Authority RAC 3/20/12 NUT-KOREAN WAR-53-214 State Dept. Guidelines, March 6, NARA JO Date 2/5/13 By NLT, Date