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come when Hong Kong should abandon its deliberate isolation from the budding political alignments of the region, for fear of Chinese reactions, and seek to see what strength and confidence we might be able to draw from these alignments. As a start, we might seek to exchange visits of suitable officers with Malaya and Singapore for the mutual gathering of experience, and publicize the visits,
(a) Japan in particular has big commercial and industrial interests here and perhaps could be induced to let the word get to the Chinese that she would be very unwilling to see them interfered with.
(e) Is there no neutral ground (Pakistan?) where our diplomatic representatives (or other mission on our behalf) could approach the Chinese representative and try to find out just what Peking would be satisfied with? Locally, we are getting practically nowhere in our contacts and it is doubtful where the power lies.
(f) Can anything be done, at least in the United Kingdom to induce importers not to write us off but to re-order confidently? Any signs of lack of confidence of this kind in the United Kingdom would be disastrous indeed, The recent reported increase in shipping insurance rate is certainly very damaging,
(g) Could an interdepartmental standing committee be set up in London to keep the situation under review and to suggest what measures could be taken to help us from outside Hong Kong? Sedgwick might be able to help on this committee and Bank of England representation would seem desirable.
I
30 I am afraid the above is very scrappy, but I hope it may serve to stimulate some new lines of thought and action. should be glad of your views.
(Passed as requested).
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