Guerilla activities here are conducted largely by:

(1) War time 'Malayan Peoples anti-Japanese Army' and
(2) Small mobile groups of professional gunmen (see part two (c)
of my report enclosed with Ministerial despatch Number 3, July
15th), aided by some Chinese and a few Malayans who are
(1) operative consequently on fear of ([1] reprisal) and
(2) for purpose of possible gain.

2. Development of initiative as follows:-

During Malayan campaign of 1941-1942 the only Asian elements to
rally effectively to the defence, very early against the Japanese
were the Chinese Communists here organised in [2] [Dal]force under
Colonel Dalley. [3] Later during the occupation they formed MPAJA
and carried on spasmodic guerilla resistance, by which time K.M.T.

Chinese here had also a resistance force in action on a smaller
scale. Both groups were contacted, armed to some extent trained
and led by British Officers of Force 136. It must be admitted that
the resistance value of all these guerillas has been exaggerated
since the war and that they were frequently interested in mere
banditry and in addition spent considerable energy in fighting
against each other.

3. On re-occupation both groups were dissolved and 'surrendered
their arms'. Though large quantities of these were buried and both
groups continued to develop skeleton forces in remote areas,
demobilisation took place fairly smoothly and in the case of MPAJA
Old Comrades Association, recognition of the services of all those
active in guerilla resistance was given in the form of
commendation and a monetary bonus. Although few were satisfied
with this, most were re-absorbed into civilian life without undue
difficulty. Thanks to the action of Lord Mountbatten the guerilla
community received adequate and in some opinions excessive
recompense for services rendered.

4. I can find no evidence that post-war treatment of these forces
was the subject of any diplomatic representation by the Chinese
Government and it seems unlikely that the latter would be
interested in advancing the interests of a sworn anti-K.M.T. body
like MPAJA. Equally, although MPAJA Old Comrades Association
opposed to federation constitution as part of AMCJA PUTERA [4]
front (because like all Chinese groups it thought constitution
unduly pro-Malay) its decision to take up arms this year was
influenced only to very slight extent by this consideration.

You will see there can be no question of the Chinese Government
calling off hands which not only reject its authority but are
fighting determinedly against it in what is partly an extension
here of civil war in China. You might note in Malaya more K.M.T.

Chinese have been murdered by guerillas than Europeans.

5. There are no grievances peculiar to some MPAJA forces of which
Communists could take advantage. You will have formed your own
opinion of evidence in my report that insurrection here was
deliberately inspired by Malayan Communist Party for political
purposes and was possibly allied in this respect to current
insurrection against Burmese and Indonesian Governments. Whatever
its origin, it found support here in normal grievance of a
labouring population and in addition, Chinese susceptibility to
intimidation.

6. My reports have given real explanation of the present
insurrection. I agree however that, K.M.T. or Communist Chinese
are tirelessly expansionist, and both groups maintained private
armies here prior to the present outbreak-see my telegram [286 of
April 27th] [6] for [7]-of K.M.T. force in Perak. I believe
Chinese loyalty is basically to the Chinese race (see my despatch
2 October 20th 1947) and real Significance for f[ut]ure [8] of
present outbreak is its Chinese expansionist aspect.

7. There is no foundation for statement concerning guerilla bands
in vicinity of Singapore.

8. Further comprehensive report will be forwarded [9] together
with copy of the Awbery Dalley Report [10] which is very
comprehensive.