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There is also some possibility that he took offence that no official social occasion was arranged for him, other than by the U.S. Consul-General and the newly formed American Chamber of Commerce, in spite of the briefness of his visit. He used the occasion of the Chamber of Commerce dinner to make a further one-sided presentation of his 'case' for restraint, in the presence of among others, the Chairman of our Trade Development Council and the Director of Commerce and Industry - neither of whom, of course, had any opportunity to speak.

I have wondered if the defence of Hong Kong interests by United Kingdom representatives at the London meeting (and the presence of Whitehead in Hong Kong) may not have had something to do with his attitude in so far as it stressed our dependent status and led him to expect an appropriately docile and subordinate audience. Certainly he seems to have received some frank reactions elsewhere without over-reacting himself; indeed, he complained in Hong Kong of the undiplomatic attitude of the Japanese who had rejected his proposals before he made them.

As to whether any serious damage ‘requiring remedial action will have been caused when, the smoke clears and Stans recovers from the strain of his mission, it is not easy to say, but we will watch out for any signs and let you know. I understand that when Stans complained to Whitehead he assured him that he did not intend to take the matter any further. I doubt if any special action is required in the meantime.

One thing that was clear was that Stans and the Commerce Department (particularly Nehmer) were enjoying the, at least temporary, freedom" of action given them by the absence of any strong Department of State appointment on the economic side: which, I believe, is now being remedied.

I understand that there was no time to discuss the matter at length with Cowperthwaite last week, although Snelling had a brief word with him on the telephone.

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/The short.

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