CONFIDENTIAL

both Anthony Elliott and I would be very interested to know on what lines you may now be considering further action. (We assumed, perhaps wrongly, that one of the reasons for your presence in Hong Kong had been to discuss Grey).

4.

There is a further point which both Anthony and I feel we should make. During a recent visit here on CCCCM business St. Clair of Trade Folicy Department told us that H.M.G. had recently met a Chinese request for urgently needed equipment (apparently falling within the scope of the COCOM administrative exception procedure) at Canton airfield. This seemed to us a case when we might have used a little "squeeze" on the Chinese. Perhaps it was thought of, but rejected?

Yours

ever,

lifo

Michael Will

-(K.M. Wilford)

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CONFIDENTIAL

J

not copying

This letter elsewhere.

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