CONFIDENTIAL
1.
references to their "uncivilised" behaviour to diplomatists
and other foreigners. This does not necessarily mean that
their policy is influenced, but it does suggest that in
certain sections of the leadership at least there is some
sensitivity on this subject.
4. It is also true that we have had some success in educat-
ing the press and public opinion in this country to realise
that retaliation against 'Chinese nationals is not likely to
be helpful. On the other hand there is still a steady
trickle of letters and Parliamentary Questions demanding
retaliation. They tend to increase whenever public attention
is focussed on British subjects in China, ss for example when
Sir D. Hopson arrived in this country. Mr. Cradock is
wrong in supposing that we deliberately muted publicity
about Mr. Johnston of the Chartered Bank (who was arrested
in Shanghai) because a team from another British firm,
Simon Carves, was negotiating in China. It was in fact at
the insistence of the Chartered Bank that the statement was
kept in restrained terms. At that stage, the Bank were not
sure whether the case was conrected with an affair between the
Bank of China in Singapore and their own Branch there and
thought that if it were, it might be possible to settle the
matter by negotiation so long as the Chinese were not driven
to take a public stand. The position is still obscure and for the moment the Bank prefer that pressure should be
CONTIDENTIAL
/maintained