SECRET

Chinese deferred a meeting planned for 20 November until the following

day. At this meeting neither side made mention of Senior Inspector

Knight and discussion centred upon the amount of payment to be made to

peasants (devaluation was mentioned); what the Shum Chun authorities

could say about the nature of the payment when handing it to the Commune

for distribution and the timing of the removal of the wire fence. No

agreement was reached but the Chinese proposed a further meeting for

Our negotiators' impression was that during the latter

part of the meeting the Chinese were stalling and making no real attempt

to conclude agreement.

23 November.

Hong Kong Department

22 November, 1967.

SECRET

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