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the banks and trading organisations gave up completely their anti-Government activities. This seemed to give him a great deal of pleasure and he said that he was sure that very soon even the communist shops would find it necessary to do away with their window displays on the Thoughts of Chairman Mao and to become what he termed proper retail organisations.
(10) Belgian Bank Problems
12.
Jay said that Mardulyn and other members of the Belgian Bank had been to see him with a request for assistance in overcoming various payment difficulties which they had experienced with China. Jay was not prepared to assist them as, in his opinion, they had been less than honest with him about discussions they had already held with members of the local Bank of China.
(11) LEUNG Sheung-yuen
13.
I asked Jay whether there was any truth in the report that LEUNG had recently been recalled to Peking. He said that he had no information on this but of course was aware that LEUNG Wai-lam of the N.C.N.A. and LIU of the Bank of China had been recalled to Peking and had been severely criticized for the parts they had played in last year's disturbances.
COMMENT:
14.
In respect of Anthony Grey, I am only too well aware that I did not carry through the intentions expressed by London. However, by accepting Jay's proposal there should be no great loss of time and indeed there should be substantial advantage if in fact his approach obtains a response. Even if (and this must be a possibility) Jay reports precisely what I said to him, then nothing will have been lost as London's intentions would have been carried out, i.e. Peking would know that we would be prepared to swap HSUEH Ping for Anthony Grey: they may, of course try to step up the price but this was a possibility, even a probability, if the precise London instructions had been followed. It is my personal belief that Jay is right in his assessment of the situation, although of course this cannot be proved, or at least cannot be proved until a response has been obtained from Peking.
15.
A further point of interest was Jay's open admission that his contact in Peking is with CHOU En Lai's secretary. This may have been inherent in what he has said in the past, but it is the first specific indication.
18th September, 1968.
fxter
(J. Cater)
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