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and 9 Hong Kong residents of Chinese race whose nationality

is not known. No reply has yet been received from the

Chinese.

15. On 12 March Butterfield and Swire, Blue Tunnel agents

in Hong Kong, reported that they had heard from a representative

(of Chinese race) whom they had sent to Shanghai that the

delay was due to a group of officers attempting to obtain

military information, possibly at the instigation of the

company, end that the matter was still under investigation.

Later information suggested that the outcome of the incident

depended on a suitable confession from those accused, and

that the nato was the principal person involved.

16. We are keeping in touch with the Blue Funnol line,

particularly on the problem of whether or not they should in

present circumstances proceed with further sailings to China.

E. Kr. and Mrs. D. Self

17. Mr. Self is the Manager of the Shanghai branch of the

Hong Kong and Shanghai Banking Corporation. He was due to

leave China in May last year and duly applied for an exit

visa. His successor, Mr. Lachlan, has been in Shanghai sinoa

before Mr. Self's visa application. The Chinese held up the

visa on the grounds of some irregularity in the Bank's affairs

and demanded that Mr. Self apologise for "the crimes committed

by the Bank since 1949". Further enquiries suggested that the

Chinese had in mind some money belonging to 1.0.1. which the

Bank passed to our Mission in Peking and which various 1.0.1.

/officials

CONFIDENTIAL

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