CONFIDENTIAL
5.
:
photographs in prohibited areas.
(Unexposed film was taken
from Mrs. Watt when she was searched by the Chinese authorities before she left Shanghat for England last August.)
11. On 27 February, Mr. Cockburn, the General Manager of
Vickers-Zimmer, and Kr. Parry, a legal adviser, went to Peking
to try to settle the question of Mr. Watt and Mr. Deckart and
other problems which have arisen over their contract. Their
departure from China was delayed by the Chinese. They finally
returned on 15 February. Although they made suggestions to
their Chinese client, the Technical Import Corporation, for
the better organisation and running of work on their plant,
the Chinese refused to discuss anything except the charges
against Mr. Watt. They repeatedly demanded that Vickers-
Zimmer accept full responsibility for the actions of Kessrs.
Watt and Deckart and make full apology. Mr. Cockburn refused
to accept any responsibility while agreeing that, if details
of Kr. Watt's activities were made known and it emerged he had
infringed any laws or regulations, the company would make
appropriate apologies. At the final meeting with the Chinese,
Vickers-Zimmer wore accused of accepting the contract purely
in order to danage China and it was suggested that the whole
affair was a deliberate fraud planned by the company.
12. Vickers-Zimmer propose to send a letter to their client
making specific suggestions for putting work on their plant
on a responsible commercial basis and pointing out to the
Chinese that at present it would he difficult, if not impossible,
for them to persuade other engineers to go to China.
COFFIDENT TAL
/13.