LIKK 160/1
2 SEP 1936
DISK OFFICEP
ADEX
PA
CONFIDENTIAL
TOP COPY Q DIST ?
521
OCMIAN 9433
CONFIDENTIAL
DD 02010OZ PEKIN
FM FCOLN TO PEKIN
011600Z SEP
GRS 380
CONFIDENTIAL
FM FCO
TO DESKBY 020100Z PEKING
TELNO 875
OF 011600Z SEPTEMBER 86
INFO IMMEDIATE HONG KONG, PARIS, BTC HONG KONG
59433 - 1
FOR SIR E YOUDE (VISITING)
HONG KONG TELNO 2764: DAYA BAYA
1.
502
FURTHER TO OUR TELNO 1833, THERE ARE A FEW CONSIDERATIONS
WE SHOULD LIKE YOU TO BEAR IN MIND IN YOUR REMAINING DISCUSSIONS
IN PEKING, WHEN DEPLOYING THE LINE IN PARA 6 OF TUR ON CONTRACT
SIGNATURE.
2.
WE ARE CONCERNED THAT WHEN SPEAKING ABOUT DELAY TO
SIGNATURE TO ALLOW FOR THE LEGCO REPORTS TO BE DEBATED, IT IS
IMPORTANT TO REFER TO THE PREVIOUSLY EXPRESSED WILLINGNESS OF THE
CHINESE TO TAKE THIS COURSE. THANKS TO DEFT FOOTWORK BY PEKING
THE CHINESE MADE THIS OFFER PRIOR TO ANY REQUEST OF OURS AND WE
ARE ANXIOUS THAT THEY SHOULD BE REMINDED THAT WE ARE TAKING UP
THEIR OFFER, FREELY MADE. OTHERWISE THE CHINESE MIGHT LATER CLAIM THAT THE DELAY WAS FORCED ON THEM BY THE UK. THIS WOULD HAVE IMPLICATIONS FOR THE COMMERCIAL NEGOTIATIONS AND COULD
RESULT IN HMG FACING CLAIMS FOR COMPENSATION.
3.
SECONDLY THERE ARE PRACTICAL CONSTRAINTS ON WHEN SIGNATURE CAN TAKE PLACE TO ALLOW ATP ON 7 OCTOBER. BEARING IN
MIND THAT VARIOUS STEPS (INCLUDING SIGNATURE OF THE LOAN AGREEMENT) NEED TO BE TAKEN BETWEEN CONTRACT SIGNATURE AND ATP,
1
CONFIDENTIAL