THE SECRET
Australian Government to do what they could to doing 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 believo that it was "business as usual", despite what
they were doing in Hong Kong.
5. Although reluctant to interfere with the purely
commercial operations of the Australian heat Board, the
Australian Govéruzent arranged postponement of the conclusion
of the deal until after disturbances had ceased in long song.
In addition, it was arranged that the delegation sould say
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. Se bad no large deals of our om at that
time through which we could have brought pressure to bear.
6. The Australians wanted to know what we ourselves were
proposing to do about our trade with China, e explained that
we had not asked them to deny wheat to Chine but only to slow
čown negotiations to help us over the insediate crisis in
Hong Song. We told them that we were studying the question
of our trade with China. Kr. 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
7.
bat began za minor disturbances on the 6th lay, arising
out of a labour dispute, was on the 11th May taken up and
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