CONFIDENTIAL

115606 MDLIAN 1947

INTERNATIONAL LEGAL ASSISTANCE, THE DEPUTY DIRECTOR OF WHICH, A MADAME ZOU DECI, WAS ALSO VERY ACTIVE IN THE FIELD.

4. XU CONCLUDED THAT IF WE WISHED FORMALLY TO PURSUE THIS MATTER, WE SHOULD APPROACH THE MFA. HE DID NOT, HOWEVER, SEE ANY OBJECTION TO THE EMBASSY'S APPROACHING YU SHUTONG SEPARATELY OR

BEFOREHAND IF

·

WE FELT WE COULD GET ANY USEFUL INFORMAL GUIDANCE FROM HIM. THOUGH

HE DID NOT (NOT) GIVE THE IMPRESSION THAT YU HIMSELF HAD BEEN

PREPARING ANYTHING IN PARTICULAR TO SAY TO US. I LEFT IT THAT I

WOULD CONSULT YOU AGAIN BEFORE DECIDING WHETHER TO ASK FOR A MEETING

WITH YU AND IF SO, WHAT GROUND TO TRY TO COVER WITH

HIM.

5.

USING THE DISCRETION IN THE LAST SENTENCE OF PARAGRAPH 4 OF YOUR

TELNO 161, I HAD SPOKEN INFORMALLY A COUPLE OF DAYS EARLIER TO A

COUNSELLOR IN THE WEST EUROPEAN DEPARTMENT OF THE MFA. HE SEEMED PLEASED TO HEAR OF THE UK INTEREST IN A BILATERAL AGREEMENT, BUT SAID IMMEDIATELY THAT THE PROPER PLACE FOR US TO ADDRESS OURSELVES

TO WOULD BE THE TREATY AND LAW DEPARTMENT OF HIS MINISTRY.

COMMENT

6.

IT IS CLEAR THAT WE SHALL NOT GET MUCH FURTHER WITH THIS UNTIL

AND UNLESS WE ARE ABLE TO PUT OUR CARDS ON THE TABLE WITH THE MFA.

THE CHINESE ARE NOT AND NEVER HAVE BEEN IN THE POSITION OF

DEMANDEURS (CLIFFORD CHANCE ORIGINALLY CAME UP WITH THE IDEA THEMSELVES TO SERVE UK COMMERCIAL INTERESTS, NOT REPEAT NOT AT CHINESE PROMPTING): AND THEY NOW HAVE SEVERAL OTHER EUROPEAN COUNTRIES RUNNING AFTER THEM. IN THE CIRCUMSTANCES THE MOJ CLEARLY FEEL UNDER NO OBLIGTION TO VOLUNTEER ADVICE, AND HAVE PROCEDURAL GROUNDS FOR DECLINING TO TAKE PART IN ANYTHING BUT INFORMAL AND PRELIMINARY EXCHANGES WITHOUT MFA INVOLVEMENT.

7.

·

GRATEFUL FOR FURTHER INSTRUCTIONS IN THE LIGHT OF THIS. IF YOU

WISH ME TO CALL ON YU SHUTONG FIRST I WOULD NEED MORE DETAILED ADVICE ON THE PROBLEMS OR PROPOSITIONS TO WHICH WE PARTICULARLY WANT HIS REACTIONS, AND ANY STEER TO BE CONVEYED TO HIM ON OUR OWN

PREFERENCES FOR AN AGREEMENT.

BAILES

YYYY

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