CONFIDENTIAL

Kg Kong telegram No. 330 to Commonwealth Office

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(c) There would no no question of our entering into anything in the nature of a written agreement with him or anyone else in Hong Kong.

(d) Initially, we would be interested to know what was implied by the suggestion that the discussions be conducted on the basis of the Chinese "demands". We had already made clear many times that the demands as we interpreted them were unacceptable to us. But we would like to hear his views on the point.

6. The final question is who should represent us. A possibility would be the Political Adviser or alternatively Cater, who is already in personal contact with the source and who, though still acting as Deputy Colonial Secretary, has also now taken up his duties as Executive Director of the Trade Development Council, and therefore would have the advantage of semi-unofficial status.

7. Grateful for your views.

Foreign Office please pass Peking Immediate 107 and Washington Priority 33.

Sir D. Trench

[Repetition to Peking, referred for departmental decision, repeated as requested to other posts]

DEPARTMENTAL DISTRIBUTION

C.O. H.K.Dept.

F.E. & P.D.

F.O. F.E.D.

D.D. & P.U.S.D.

D.S.A.0. Personnel Dept.

PPPPP

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