SEORET
12
of the contract.
Until there is a reply, it is difficult
to assess whether or not the Chinese, having made their
gesture, might be prepared to expel Mr. Watt in the coming
months.
(c) Mr. Barrymaine
Mr. Barrymaine was probably taking photographs unauthorised
places. So far our Mission in Peking have been unable to
obtain any details. Mr. Barrymaine is known to the Office
as an unreliable and slightly unbalanced characterl
(d) s.s. "Perodocus”
*
The crew of the "Demodocus" includes 42 British subjects
(citizens of the United Kingdom) A Chinese representative of
the shipping line's agents in Hong Kong has been to Shanghai
and from his reports it would appear that one or more of the
officers are under investigation for alleged espionage.
Mission in Poking have been unable to obtain any information.
Blue Funnel are holding up sailings to Chinese ports for the
time being; and if the affair drags on it could clearly assume
very serious proportions.
MEASURES FOR THE LONGER TERM
14.
The
If, despite a conciliatory attitude in Hong Kong and
lifting of restrictions on the Chinese officials here, we do
not make progress on exit visas for our staff or on Eritish
subjects in trouble in China, what then? We are short of
effective bargaining counters.
(a) Withdrawal of the Mission
It may be asked whether any useful purpose is still
served by retaining the Mission, the very existence of which
SECRIT
/inhibits