TOP SECRET 7. The Chinese Reform Association, which was ostensibly a constitutional reform body of leading Chinese business men, has shown its hand as a potential communist tool and released a statement urging that negotiations with the Communists be started in Canton for a trade agreement and in Kowloon City about the New Territories. The so-called Kowloon City Residents Association is now controlled by opportunist pro-Communists and several meetings have been held in the area, the claim being voiced as usual that Kowloon City is Chinese Territory.