From information we have here, it would appear that the guerilla
activity in Malaya is conducted by certain guerilla bands
organised to combat Japanese who, since the war, have been
demanding recognition for their services, rehabilitation and other
assistance. The matter has been one for negotiation on a high
plane between the Chinese Government and the Malayan and Singapore
Authorities, but no agreements have been reached except in respect
of guerilla bands that were in the vicinity of Singapore and who
are now satisfied. It would appear that one of the reasons why
there has been no agreement is that the Chinese have opposed the
new constitutional provisions by which Chinese Malays should forgo
their nationality, and that the Chinese Government has made no
attempt to call off the guerilla bands until this and other
demands have been satisfied. Meanwhile, Communists have taken
advantage of the dissatisfactions amongst the Chinese in Malaya,
and the position has gone beyond the point where the Chinese
Government could, if it were willing, exercise any influence. The
basic movement, however, would appear, on this analysis, to result
from Chinese national expansionist motives, and not from any
Communist policy. Your urgent comments would be appreciated.