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Hong Kong telegram No. 1614 to Commonwealth Office
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(c) We would be prepared to consider realignment or even removal of the fence (particularly a section at Man Kam TO where it was doing no good and causing inconvenience but not with specific or exclusive reference to fields of peasants from Chinese territory. We must moreover make it clear that final decision on alignment rested with us. (This fence is no real obstacle anywhere).
(a) The amount involved is small and we would agree; making it clear that payment was wholly an act of goodwill.
(e) This is normal practice and we would agree.
In addition, our representatives would require:
(a) The return of the sterling gun stolen from Inspector Colley on 11 August.
(b) The return of Knight and the two policemen,
(c)
The return of the villager abducted on 11 October. (a) The understanding in paragraph 6 (b) which is the best we are likely to be able to achieve to gain our main point of securing stability on the border.
(e) We would expect agreement to some permanent method of consulting on border problems, such as perhaps a telephone line between border authorities.
I recognize that a deal on these lines could be represented by the Communists as being very favourable to them and that they could make sufficient capital out of it to cause undesirable loss of confidence locally; but I nevertheless feel that we should take a chance on this in the hope of securing some stability on the border, even if only for a limited period.
Foreign Office pass Immediate to Peking 601 and Priority to Washington 349.
Sir D.
Trench
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