3.

(d) we do not think an approach to the Japanese

I

Government would produce any useful response.

Consi

We are considering other methods;

(e) we really do not see any future in trying to

find out what would satisfy Peking. An

approach in a third country or through a

third party will not result in a response

that would be any different to the one we

would get if we made our own approach in

Peking or London; no such approach would be

answered directly but would be referred back

to Peking whose response in present

circumstances must be the reiteration of

their full demands. with the example of

Macao before us we must avoid entering into.

any negotiations unless Peking itself offers

terms that could provide the basis of an

acceptable settlement.

Your paragraph 2(f), You should know of the

following developments:-

(1) In answer to the few trade enquiries

received, we and the Board of Trade are

taking the line that Press reports may have

tended to give an impression of more wide-

spread disturbances than have actually

occurred and that there has been very little

disturbance to commerce and industry. We

have suggested that no precipitate action

is called for in abandoning projected deals

and

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