CONFIDENTIAL
-2-
4. THE BANK OF CHINA HAS CONTINUED TO REFUSE TO ACCEPT OUR CHEQUES
IN PAYMENT FOR SUPPLIES ON THE GROUNDS THAT FIGURES HAVE NOT BEEN
RECONCILED AND THEY CLAIM THAT THERE IS A DISCREPANCY IN THE
OCTOBER ACCOUNT, WHEN PAYMENT WAS ACCEPTED WITHOUT RECONCILIATION.
WE ARE NOW EXAMINING THE POSSIBILITY OF OPENING AN ACCOUNT ON
BEHALF OF THE EAST RIVER WATER BUREAU IN A NON-COMMUNIST BANK INTO WHICH WE COULD DEPOSIT PAYMENTS UNTIL SUCH TIME AS THE CHINESE AGREE
TO ACCEPT THE MONEY.
5. THERE IS AN UNCONFIRMED REPORT THAT THE CHINESE ARE CONSIDERING
OFFERING FREE WATER SUPPLY IN FUTURE AS A PROPAGANDA MOVE. A PAPER
EXAMINING THE TECHNICAL AND POLITICAL IMPLICATIONS OF THIS OFFER
IS UNDER PREPARATION.
C.0. PLEASE PASS PEKING 204.
MR. GASS
[KEPETITION TO PERING REFERRED FOR DEPARTMENTAL DECISION]
DEPARTMENTAL DISTRIBUTION
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W.E.D.
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bm
Om one
Any
marth.
و رسمی
No. Confima
በ.
For the
n.f.a.
The paper
Sthink.
We should help our eyes open
mentioned
in para 5.
Lou
65
Otherwine
bu
6.760
18.
CONFIDENTIAL
ви
6.8.68
ANG