SECRET

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to improve. The volume of Sino-British trade was not at present

very great, but there was tremendous scope for development.

Both sides should have confidence in this and try to work out appropriate ways to increase trade.

Copies to:-

PS

PS/LPS

PS/PUS

Sir E. Youde

Sir A. Acland

Mr. Donald

Mr. Elliot, FED

Mr. Clift, HKGD

HMA, Peking

Chancery, Peking (2)

Governor, Hong Kong

Political Adviser, Hong Kong

1

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