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Cypher/Cat A
PER G TO FOREIGN OFFICE
Telno 586
ECRET
20 JUNE 1968
591
Addressed to Foreign Office telegram No. 586 of 20 June. Repeated for information to Hong Kong.
My immediately preceding telegram.
Following are questions to which I should be grateful to know the answers if possible:
NOT ON
(a)
Chinese ship chartering. Could we prevent the Chinese chartering ships in London and if so would they find it easy to ▸tain alternative ships elsewhere?
(b) Could we impose an embargo on British ships calling at Chinese ports? (And Chinese ships calling at British ports?). Given present anxiety about British Merchant Marine Officers visiting China (my telegram No. 545) presumably shipping companies would be readier to accept such an embargo, at least
a temporary measure.
as
(c)
Is there any action which could be taken against Chinese trade with or through Hong Kong without involving unacceptable risks for the Colony? Is there, for example, any effective way of limiting the amount of external sterling which China takes out of Hong Kong?
(a)
Closure of Bank of China in London. In your telegram No.1112 of 29 December 1967 you said this would present con-
Out n siderable legal difficulties.
Fresumably these difficulties
could, if necessary, be surmounted. You also mentioned the possibility of strong reaction by British firms to such a
move.
Why might they react in this way and would we, in the contingency envisaged, give very much weight to this considera- tion? How greatly would Chinese be inconvenienced by such a closure and what are current chances of their being able to establish the Bank of China branch elsewhere in Europe?
(e) Could we take swift action to block Chinese funds held in London? How large are these funds?
Foreign Office pass to Hong Kong 428.
Sir D. Hopson
[Repeated as requested]
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