SECRET 7. It seems probable that the Karens, particularly if disappointed in their hopes of achieving an autonomous Karen state, will pass increasingly under Communist influence. Their numbers would be a formidable addition to Communist strength Chinese Influence 8. The Chinese Government has hitherto maintained an outward appearance of friendliness towards the Burmese Government, but its Embassy in Rangoon has been active in organising the Chinese community in Burma. It is believed that the Chinese Government has set up an organisation for supplying arms to the Burmese Communist Party.