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MEETING WITH MR. C.C. LI OF BANK OF CHINA 20.IV.68 (Li Chuo Chi and senior interpreter. JK and Y.C. Huang)

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Li gave me an affable welcome, enquiring how

I had been getting along since we last met a year ago. The usual translations back and forth were dispensed with nor did I get a standard opening lecture (I had anticipated Fascist atrocities and Mao's American-negro line which now seems to' sweep China).

I said that last year had been a disappointing year for Sino-British Trade. I had been a pioneer of building up trade to our mutual advantage since 1949 and in mid-sixties we had seen some good results. 1967 had been stagnant, the figures had been sustained better than I had expected, in 1968 they would decline. I said I had written a month or so ago to the C.C.P.I.T. in Peking suggesting discussions on ways to improve trade but I had received no reply. I asked if there had been changes in senior personnel and to my surprise Li said there had not. I said that in London we have no Charge nor Commercial Councillor and are perhaps not too well acquainted with current policies and trends within China. I thought a meeting to bring. some understanding of thought might be useful. Li made no answer.. He then asked what feelings about China are in London. I said that the British were naturally much upset by the burning of the Reprsentative in Peking's office, the restraint imposed on free coming and going of Hopson and his staff, the house arrest of Gray and the difficulties experienced with British shipping. (I added here that Jardines much regretted the "Eastern Moon" incident and we had apologised for the behaviour of one or two officers and crew. We feel it is time we returned to the China-Australia Trade - no reaction). My report on London attitudes brought out a long account of Hongkong Government brutalities last summer, illustrated with photographs of the arrest of Bank of China staff in a printed booklet. He went into some detail on detentions and spoke with genuine feeling. This predominance of the Hongkong problem was really the keynote of the meeting, namely as long as Hongkong maintains its present attitude and China's demands are not met, nothing can be done to improve U.K. trade. Li mentioned that Peking really had nothing against Jardines and he was in fact quite moderate in his wording and attitude, he was however absolutely firm and at the same time friendly.

The meeting did not last long, it was pretty obvious that neither side had any intention of moving an inch. It will be interesting to see whether Li's reports to Canton on Monday and to Peking will make any visible impression. I doubt it. He reports Hsieh Shou Tien in good health. Li Meng-Hou with blood-pressure trouble. Fong Kao as still No.1 of the Bank in Peking, and very little else about anybody or anything.

HONGKONG: 22nd April, 1968

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