CYPHER CAT A

SECRET

FLASH COMMONWEALTH OFFICE TO HONG KONG (DTD)

TEL NO. 2231

1 NOVEMBER 1967

146

(139)

SECRET

ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NO 2231 OF 1 NOVEMBER REPEATED FOR INFORMATION TO POLAD SINGAPORE PEKING AND WASHINGTON.

YOUR TELEGRAM NO 1614.

HONG KONG BORDER.

FOLLOWING FROM GALSWORTHY.

WE AGREE THAT ATMOSPHERE IN WHICH TALKS WERE HELD AND FACT THAT

THEY WERE CONFINED TO BORDER ISSUES ARE ENCOURAGING SIGNS. WE ARE

IN GENERAL AGREEMENT WITH YOUR PROPOSALS. BUT THERE ARE TWO POINTS

ON WHICH WE AND FOREIGN OFFICE FEEL CONSIDERABLE DOUBT AT OFFICIAL

LEVEL AND ON WHICH WE WOULD WISH TO CONSULT MINISTERS. THIS WE WILL DO AS EARLY AS POSSIBLE TOMORROW MORNING.

2.

FIRST, ON VENUE FOR NEXT ROUND OF TALKS, AS SEEN FROM HERE WE QUESTION WHETHER IT WOULD BE WISE TACTICS TO YIELD NOW ON POINT OF RECIPROCITY. CHINESE OBVIOUSLY APPEAR TO WANT SOMETHING OUT OF THESE TALKS: AND AS THEY PLAYED HARD TO GET IN FIRST PLACE WE WOULD SEE ADVANTAGE IN CONTINUING TO PRESS FOR TALKS TO BE HELD ON ALTERNATE SIDES OF THE BORDER. EVEN IF WE DECIDE TO GIVE WAY ON THIS WE DOUBT WHETHER WE SHOULD DO SO TOO SOON OR TOO EASILY. MIGHT THIS NOT RESULT IN OTHER SIDE RAISING THEIR ANTE?

3. SECOND, WE ARE UNHAPPY ABOUT DEMAND IN (D) OF YOUR PARAGRAPH 3. WE BELIEVE THAT TO AGREE TO COMPENSATE PEASANTS FOR LOSSES SUSTAINED AS A RESULT OF CLOSING THE BRIDGE WOULD CONSTITUTE DANGEROUS PRECEDENT FOR THE FUTURE AND WOULD LEND ITSELF TO INTERPRETATION AS AN ADMISSION OF ERROR ON OUR PART IN CLOSING THE BRIDGE. THESE OBJECTIONS COULD NOT OF COURSE APPLY TO (E) OF YOUR PARAGRAPH 3 WHICH WE AGREE WOULD BE REASONABLE AND IN ANY CASE IS NORMAL PRACTICE.

4.

CAN OUR REPRESENTATIVES CONTRIVE TO SPEND TOMORROW ARGUING

ABOUT VENUE, PERHAPS DOING THIS EITHER FROM POSITION ON THE BORDER

OR BY SENDING MESSAGES ACROSS?

CROSEC

DEPARTMENTAL DISTRIBUTION:

HONG KONG DEPT

FO: F.E.D,

LAST

RIT

LIS

NE,

E

F.E. & P.D,

J. I.R.D.

NEWS DEPT DEFENCE DEPT

&&&&&

NEWS DEPT J.I.P.G.D.

DIS - M.O.D.

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