CONFIDENTIAL

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(b) We should grant entry visas for officials of

the Bank of China, but their residence permits

should be made valid for only three months at a

time until the problems of our bank officials in

Shanghai have been solved.

(c) Wo should not provide entry visas for members of

N.C.N.A. or other Chinese journalists until thoro

has been come progross over Mr. Grey.

(d) We should give Sir Donald Hopson wide tactical

discretion on how he puts our points to the Chinese.

A draft telegram is attached.

(e) Wo should explain to Sir Donald Hopson why we have

not felt able to accept his advice in its entirety.

A cocond draft telegram is attached.

Background and Argument

3. In an attempt to break the deadlock over visas we decided

to grant a recently requested entry visa for a member of the

Chinese Mission in London. When the Chinese were informed,

they put forward a series of "demands" for the normalisation

of relations (Peking telegram no. 72). These were that:

(a) the exit visa requirement for Chinese officials in

Eritain should be removed;

(b) outstanding entry vicas for members of the N.C.F.A.

chould be granted (there are four, the earliest

dating back to June, 1967);

(c) outstanding entry visas for members of the Bank of

China should also be granted (there are two, dating

from June and July, 1957).

CONFIDENTIAL

jaho

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