CONFIDENTIAL
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Canada
Several reports cn Canada's intention to recognise China appeared during the period under review. The cr ntent of the reports suggested that the Chinese were anxicus to explain the delay in the announcement of Canadian recognition to their readers and to reassure them that events were moving in the right direction. Thus, on 12 July, a Japanese report appeared speculating that Canada would recognise China before the General Assembly Meeting of the United Nations in the Autumn. The report also intimated that recognition by Canada could lead to pressure on the Sate Government to re-examine its policy towards China. ́ (A later edition of the bulletin, however, reproduced a statement by a spokesman of the Japanese Foreign Ministry denying that reports of early Canadian recognition emanated from the Japanese Foreign Ministry).
A UPI despatch quoted a Canadian Ministry of External Affairs statement that satisfactory progress was being made in the study cf questions related to recognition which had recently been undertaken. It also underlined Canada's ambiguous stand on the future of relations with Taiwan, and quoted threats in the cfficial Taiwan press to break relations with Canada if she went ahead with recognition cf the mainland,
United States
The bulletin agrin monitored any significant statement en China made during the pericd under review. A suggestion in the "New York Times" that the US should no longer oppose China's entry into the United Nations, and the predictable reaction from the Taiwan pross were reported under the heading "Contradictions between master and servant". A subsequent issue, however, qucted the statement of the US representative at the UN reaffirming that there would be no change in US policy on Chinese representation. More cold water was poured cn reports cf recent US moves to unfreeze Sinc/U3 rel tions. An examination of these gestures from the Heng Keng "For
t
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Eastern Eccncmic Review" was headed "US two-faced method of
improving relations with us cannet succeed". A plea by the ex-US Ambassader tc Tekye for the relaxing of the embargo en trade with China was also given slighting treatment, while Governor Rockefeller's pledge te "institute a dialogue" with China was dismissed in the headline: "Rockefeller trc is playing tricks en policy towards China". Several rather smug articles from the Hong Kong communist press cn US inability to interpret developments in the Cultural Revolution in China were alsc reproduced.
A close watch was kept on military developments in the Far Bast.
A USIS announcement that the US was considering the construction of a large air basc in Scuth Kerea to replace Okinawa when the latter is eventually handed back to Japan vas reproduced without comment. Similar treatment was given to another repert of a US-Scuth Korea agreement to expand US military facilities in Scuth Korea.
France
series of AFP despatches from Peking, and comments cn China's internal affairs culled from the French press have appeared over the last few weeks. These included a "Le Monde" article which argued that the increase in industrial and agricultural production in China in 1967 was probably between 7-8%, and net 10% as cificially claimed.
The article
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CONFIDENTIAL