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on 21 July the Foreign Secretary raised with the Home Secretary

the possibility of taking certain action against N.C.N.A. in

London (see his minute of 19 July). The Home Secretary's reply

dated 1 August was unhelpful. What it amounted to was that the

Home Secretary had powers to harass non-diplomatic Chinese,

e.g. members of N.C.N.A., by ordering them to report to the police ("restriction on residence") and to prevent them from

leaving the country or to oblige them to do so by withdrawing

their residence permits.

these powers because he thought that it could not be justified

as "necessary in the public interest" to restrict residence or

"conducive to the public good" to deport. In the case of

leaving the country there was a loophole in that there were no

immigration controls for departure to Ireland via the West coast.

4. The Foreign Secretary minuted again to the Home Secretary

on 14 August, urging certain immediate action against N.C.N.A.,

i.e. the withholding of entry visas for new personnel and a delay

in the extension of the residence permit for one employee and the

institution of a system of exit visas. The Secretary of State

also pointed out that in certain circumstances if the Chinese

took further action against Mr. Grey there would be strong

parliamentary and public pressure to take immediate action

against the N.C.N.A. in London by expelling all expatriate

staff. He asked the Home Secretary to reconsider his position

on this (paragraph 6 of the Secretary of State's minute under

reference).

He was, however, unwilling to exercise

CONFIDENTIAL

15.

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