9.

10.

11.

12.

13.

A decision had to be taken and taken quickly.

Was the Department

of Industry willing to assume direct leadership in this matter? Were they willing to act rather than talk?

All I had been able to do was to provide a contact. . I am committed to write a letter to Mr. Sun Suo-Chang giving one or more definite and concrete proposals.

The subject of compensatory deals has been discussed on a Government to Government level and I cannot put forward any proposals without

full Government support.

Was the DOI prepared to give such support now or was my reply to Mr. Sun Suo-Chang to be in the form of polite platitudes, asking questions instead of giving replies.

The initiative was definitely with the U.K. and I could do no more than convey their proposal to Mr. Sun.

In conclusion, I cannot hide my disappointment that so far the U.K. authorities are not willing to take a positive attitude since without this we are treading on dangerous ground where further conversations with the Chinese could easily do more harm than good.

Mi

179

14.

I wonder if the British Government ever would have obtained control of the majority of the Suez Canal shares if they had had to ask the ECGD for permission in advance.

L

, Lawrence Kadoorie

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