CCNFIDENTIAL

embarrassment to all concerned, with consequent

Gamage to relations between China and the United

Kingdom. The subject is covered in detail in

Supplementary Brief No ...

10. There are two other bilateral problems (set

out in Supplementary Brief No ...) which we should

like to see resolved and which the Secretary of

State will wish to raise:

(a) the release of the remaining British

subjects detained in China.

5150

The Secretary of State may wish to say that we

do not question the right of the Chinese Govern-

ment to arrest and imprison foreign nationals

where offences have been committed.

Houver We

are concerned that in the cases in question the

process of investigation has lasted so long; that

the people concerned have generally been prevented

from sending and receiving letters; and that we

have never been permitted consular access to them.

There is considerable parliamentary and public

interest in the matter;

and the British press some are sure to ask what progress has been madey | The

Secretary of State will wish to refer to our

Note of 6 April 1972 in which we formally reserved

our rights. We now propose that these very large

claims should be examined by both sides with a

view to arriving at a mutually agreeable settle-

ment (the Chinese apparently agreed during

Mr Sharp's visit in August to honour certain

Canadian claims). The details should be left to

officials. [The Secretary of State might suggest,

/when referring

Progress in the

scalement

British firmal

NOTHING TO BE WRITTEN IN THIS MARGIN

claims egerist churc.

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