171

!!) Av. Ruggle

Gammara

to see X

CONFIDENTIAL

BRITISH EMBASSY,

(2)

WASHINGTON, D.C.

(139

4/11

Dear Carter,

3 November, 1967.

I have been keeping the State Department informed about the Hong Kong border talks but I have emphasised the importance of there being no leaks. When I saw Jacobson on 2 November he made one point which I must admit did not appear to have emerged from the telegrams about Hong Kong which I have seen. This is that the Chinese had made clear at the first interview, described in Hong Kong telegram No. 1614, that they were willing to return Inspector Knight and the two constables. I said that I could not confirm this, but it appeared to be correct to judge by the tone of the subsequent exchanges.

2. It is, of course, no business of mine to have views on the tactics of these talks. One point however which I must admit has been in my mind is whether, if we get into any serious talks with the Chinese about the border, one could discuss the purchase by us (or whatever word you like to use) of the Communist owned agricultural land within Hong Kong. It seems to me that if this land no longer belonged to people living in China there would be no necessity for them to come across the frontier. If they no longer came across the frontier this would resolve one of the most difficult problems that we have to face. Of course there will still be problems like the marketing of goods at Man Kan To, but this seems to be an easier problem with which to deal. I have no doubt that there are a hundred good reasons why such a negotiation with the Chinese will not succeed, but I just thought it was worth putting the thought to you.

LAST

Ri

3. I am sending a copy of this letter to Anthony Elliott.

214

W. S. Carter Esq., C.V.O.,

Commonwealth Office.

Youre eves,

Michael Luifer

(K.M.Wilford)

CONFIDENTIAL

Page 105Page 106

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