2nd Capy for Erling
CONFIDENTIAL Top Copy with FED. Hel
Cypher/Cat A
PRIORITY HONG KONG
ΤΟ
COMMONWEALTH OFFICE
Telno 612
16 May 1968
CONFIDENTIAL
653
16 May,
Addressed to Commonwealth Office telegram No. 612 of
Repeated for information to Peking.
(542)
Peking telegram No. 395 of 8 May to Foreign Office:
Rice.
As reported in my telegram No. 175 to Peking there is nothing new in the Chinese suggestion that the rice should be
the imported in batches. Nor does this affect the main issue: Chinese remain adamant that the whole 5,000 tons must be imported outside the Rice Control scheme. This is a fundamental point 408) and, for the reasons given in paragraph 4 of my telegram No. 383
we should be extremely reluctant to concede it. We have already offered to allow China Resources Company to import 300 tons of rice outside the Rice Control scheme (see my telegram No. 239). This offer was rejected out of hand and we do not believe that an offer to allow in a larger quantity (which could not, of course, approach 5,000 tons) would be any more acceptable.
2. I agree that the Chinese have now got themselves into a position from which it will be difficult to back down. But as explained in paragraph 2 of my telegram No. 175 to Peking we have already made major concessions, and unless we are to give way completely, I am at a loss to know what more to suggest.
Commonwealth Office please pass Priority to Peking No. 226.
Sir D. Trench
[Repeated as requested]
DEPARTMENTAL DISTRIBUTION
F.O.
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F.E.D. H.K.Dept.
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Bet
542
559
NEX.
REF.
R R DIVED IN ADES No. 63 10 MAYPSE
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