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China

*2. The High Commissioner said that he had asked for an interview 109 because he was about to go on four months' leave. He was interested in the President's views on China. Not only was it difficult to understand what was happening internally, but China's external relations were also puzzling, for instance the recent trouble with Burma and Nepal and also the disturbances in Hong Kong which particularly concerned us. The Chinese action there appeared to be against their own interests and to be alienating the Hong Kong population. Could the President explain this?

3. President Arub said that he had no hard information about Hong Kong. The Chinese Foreign Minister, Chen Yi, was reported to have said that it was a false notion that the Chinese government wanted the British to stay in Hong Kong, but he did not know whether they wished to take over the colony. He suspected that they would be happy to get it on the cheap in the way they had gained control of Macao but he did not think they would want to invade the territory or start a major conflict at the present time of political uncertainty in China. Nevertheless he thought that · there might be difficult times ahead for the Hong Kong administration.

4. The President said he did not understand the Burmese situation. The Chinese had always been very solicitour of Burmese feeling. It seemed that the troubles were caused by the Burmese hatred of all foreigners. He did not know whether they were inspired by the Government but the Government must have known something about them. The Burmese had caused trouble for other foreigners too. They had even ripped up the body of one dead Pakistani businessman who was being flown home to see whether any jewels were being snuggled out inside him. The President was not informed about what was happening in Nepalese/Chinese relations but he said that he knew that the Nepalese were suspicious of both China and India, particularly the latter. The King had told him personally how two-faced Mr. Nehru had been towards Nepal and Mr. Desai had stupidly said to the Nepalese at one stage that the Indians could overrun them in 48 hours.

CONFIDENTIAL

15.

RECEIVED IN ARCHIVES No. 63

25 JUL176/ 1W0.912

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