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In Moscow I met and talked with Mr. Nemchina and Professor

Tikhvinsky of the M.F.A. and the Ambassadors of Canada, France,

Denmark, Australia and the U.S.A.

Principal impressions

Canton

(a) Always a dingy place the town looked worse than ever

with many shop houses boarded up. I also saw food queues outside butchers' shops on each occasion I passed

through the town.

(b) Nearly all the businessmen to whom I talked (Arab,

British and New Zealand) described the disappointing

quantities of goods available in the fields in which

they were interested, ranging from textiles through

ginger to musical instruments.

Peking

(a) The M.F.A, had made a real effort to welcome my visit.

The presence of members of the Ministry at a meal in

the Chargé's flat was the first such visit since 1966.

Lo Kuei-po's offer of three different times for my visit

to him is, I think, a very rare courtesy. It was by

no means certain that he would receive mo at all.

(b) There is no doubt at all that China expects some advance

in the speed of release of confrontation prisoners in

Hong Kong, though they accept that any improvement will

have to be gradual and not dramatic, This issue 30

clearly stated for the first time directly must be

regarded as a touchstone in Sino-British relations.

CONFIDENTIAL

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