!
TOP SECRET
2
Australian Government to do what they could to delay the deal, since some uncertainty on this score might bring home to the Chinese the possible economic consequences of their actions in Hong Kong. If the deal had gone through quickly at that juncture it might well have encouraged the Chinese
to believe that it was "business as usual", despite what
they were doing in Hong Kong.
25. Although reluctant to interfere with the purely
commercial operations of the Australian Wheat Board, the Australian Government arranged postponement of the conclusion of the deal until after disturbances had ceased in Hong Kong.
In addition, it was arranged that the delegation should say
3
E
to the Chinese when the contracts were signed that the
Australian Government was concerned about developments in the
area and, if threats to security and stability persisted, would wish to review their total export policies in relation to
China. In our view this action was most helpful and could have
a salutary effect. We had no large deals of our own at thật
time through which we could have brought pressure to bear.
$
The Australians wanted to know what we ourselves were
proposing to do about our trade with China. We explained that
we had not asked them to deny wheat to China but only to slow
down negotiations to help us over the immediate crisis in
Hong Kong. We told them that we were studying the question
of our trade with China. Mr. Holt may enquire further about
this. He might be told that this is one of the matters being
studied by officials who are reviewing future policy on Hong
Kong and that we will keep in touch with him on this subject.
Situation in Hong Kong
What began as minor disturbances on the 6th May, arising
out of a labour dispute, was on the 11th May taken up and
TOP SECRET