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Britain but the United States" and that the Chinese are keen

to have good relations with Britain. There was some further

Flag D

Flag A

general discussion but no real progress was made.

A

5. Li went to China on 18 May and the next meeing did not

take place until 10 July. On that date the contact claimed

that Chou En-lai personally had approved the channel of

communication between him and Cater on the assumption that it

was the only channel and should be kept very secret (Hong Kong

telegram No. 895). Of the points put by the contact, the

most specific was that the communists in Hong Kong were

concerned mainly about prisoners both convicted prisoners and

detainees and strikers but in the long run both might turn out

to be of minor significance and the most difficult problem

would be the question of saving face. The contact gave it as

his advice that it would be wrong to make concessions or to

start discussions on specific points at this stage.

It would

be sufficient (a) to confirm this channel of communication,

(b) to agree it should be kept secret, and (c) to reaffirm our

desire to have peaceful relations with China while maintaining

law and order in Hong Kong.

6. The Governor commented after this meeting that he suspended

judgement on whether the Chinese Government would in the end

try to use this channel of communication for serious business

but saw advantage in keeping the channel open. He accordingly

authorised Mr. Cater to proceed on the lines suggested.

then there have been further meetings on 16 July and 2 August

(Hong Kong telegram 996). In the course of these Mr. Cater

/ has been

Since

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