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they are nevertheless not bad and the King is given all his freedom. If he shows little it comes from his retiring nature and the fact, that educated abroad for a long time, it is not an easy task for him to adapt himself to the new conditioné, The re-organization of Premier Songgrams governenent late in March was due in order to re-inforce the Premier's authority and to increase the re-armament drive of the countrye This is rendered necessary by difficult economic conditions, especially the pressure of inflation, and by the necd felt by Siam to be ready to meet an emergency which could come if one of the two neighbours fell to Communism.,In the same line is the new policy of the new Govermement to break the stranglehold of Chinese merchants on Siamese trade, This is rendered necessary by the fact, that most Chinese in Siaf continue to support the Wao Regime and sympathize, despite their great wealth, with the Communists, KENGTUNG : : The State of Kengtung in the North of Burma is now under Chinese Wationalist rúle, The forces of General Li-Mi which were pished out of China last year, have settled down in that state, are levying taxes and organizing life, They even have built an airstrip at Mongsat. There is thus in Burmese territory a new Chinese State arising. The Burmese governement has been trying very haré to push the Chinese Nationalists out, but has so far been unable to do so since it has no military forces to achieve this aim, This interesting situation is hence likely to last for quite a while despite the communiqués of the Burmese governement. SURMA : The situation continues quite confused, despite indications, that political negociations are under way between, the governement and the Karens, leading to the acceptance by the governement of the general demands of the Karens. If that be the case, the position of Communist forces would become more difficulte TIBET 4 : ney News are now quite confirmed that the situation in Tibet is deteriorating rapidly. Public discontent with ‘the Chinese has risen rapidly leading to local riots in Lhasa and an attempt by a mob to lynch Sawang Ngagou, the Chinese Qui\sling. Famine is general, since the Chinese forces are living oif@)the land, The Chinese forces are now in a state of permanent alert. LE: