CHINA NATIONAL FOREIGN TRADE CORPORATIONS LONDON OFFICE

The request is for a single "Corporation Representative Office", which would be situated in London, in a place separate from the

It is understood that the Chinese Embassy and Commercial Office. Corporations involved would certainly include the China National Technical Import Corporation, the China National Metals and Minerals Import and Export Corporation, the China National Native Produce and Animal Byproducts Import and Export Corporation, and probably the China National Machinery Import and Export Corporation as well. The representatives would not have diplomatic status, and their office would function as a non-profitmaking trade organisation.

The Corporation representatives will be allowed to sign contracts, and their sole function will be to promote import and export business. The Technical Import Corporation, in particular, will serve as an agency to facilitate exports of British plant and technology to China, while most of the other Corporations will be promoting the exports of Chinese products; a process the Chinese regard as a natural corollary to their taking a larger volume of imports from us.

Their salaries would be paid from China, and they would receive no commission: it is undear, however, what their tax status would be and whether any tax complications would arise.

Since the representatives would not have diplomatic status, they would hope to be exempt from the present diplomatic travel limitations. They would hope also to have the right of residence in Britain for at

any rate 1-2 years at a time.

As background to this request it is important to bear in mind that the Chinese have applied for similar offices in the USA, Japan, West Germany and France, and that the Technical Import Corporation is expected to open facilities in Washington at least in the fairly near

future.

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