CONFIDENTIAL

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Pensible.

The meeting concluded with an exchange of visiting cards and a reminder from Madam Zhang that she would be. in touch with us again.

I think this visit was significant because it was the first overt approach of its kind during my time as Commissioner. I and my staff have attended various social functions at the Embassy and in London when the Chinese Ambassador and his people have been present, but this was the first time that anybody from the Chinese Embassy had specifically asked to see me personally. Despite Madam Zhang's repeated descriptions of her approach as informal and friendly, it is also significant that she said that she will be back and hopes that "friendly relations" will be cemented between the London Office and the Chinese Embassy.

I got the impression that Madam Zhang was delivering messages in the full knowledge that they would be relayed to Hong Kong. Similarly she made it clear, without actually saying so, that she was speaking with authority. In the course of our conversation she was at some pains to say how well she knew the great men of China and our senior diplomats. She interpreted for the Queen on the recent Royal Visit to China, of course, and mentioned her services to visiting statesmen all over the world. She gave the impression that although her title is Counsellor, she has the ear of the Ambassador and his superiors in Peking. It is no coincidence that she recently called Sir Peter Blaker to arrange a dinner with him and Lord MacLehose, hosted by the Chinese Ambassador. She also knew that the British/Hong Kong Parliamentary Group, which Sir Peter chairs, has 170 members.

Madam Zhang strikes me as being a highly intelligent, well-educated and trusted party cadre. She is clearly using Mrs. Tierney Lo and there were moments during our meeting when she treated her with scarcely disguised impatience. I got the impression that while she is prepared to ride in Mrs. Lo's Rolls-Royce, she is not prepared to tolerate her much further.

Madam Zhang will clearly have to be watched and when she makes her next approach I propose to down-

I shall pass grade the level at which she is received.

her on to my Deputy Commissioner who will treat her with some circumspection. If there is a further approach, T propose to down-grade Madam Zhang further by referring her to one of my Assistant Commissioners, unless I am instructed otherwise by Hong Kong.

I took the opportunity of mentioning Madam Zhang's visit to Sir David Wilson when I hosted a lunch for him

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