2

CONFIDENTIAL

PEKING

Peking

Hong Kong

337/6/2

KNG TONG

(Priority)

Your telegram No. 159: Visas.

I agree that in the light of the considerations you put forward, we should now accept the conditions

which the Chinese have laid down for a return to

normal in visa arrangements. You should therefore

inform the Hinistry of Foreign Affairs that in the

interests of resotration of satisfactory working

relations we are prepared to isolate the question

of Er. Grey, and have decided to act as follows:- (a) suspend the requiroment for exit visas for all

Chinese officials in this country;

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(b) deal with entry visas, including those for

N.C.N.A. ̧ "in the normal way" on a basis of

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reciprocity;

and

(c) grent immediately outstanding entry vises for

the Bank of China and N.C.N.A.

You should emphasise that this notion has been

/taken

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