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TITLE: DETENTION OF BRITISH SUBJECTS
•IN CHINA MRS CONSTANCE MARTIN
REFER TO
MR. WILLIAM MCBAIN
NAME
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TITLE:
(Part A)
DETENTION OF BRITISH SUBJECTS IN CHINA
MRS CONSTANCE MARTIN
REFER TO
NAME
TO
DATE
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LA LA
RM7
ни
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2-w
MS WILLuan Me BAIN....
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2/2 Mar. Appleyard
23-34; 29 Mr Wilson
In Appleyard .39
for wilfm
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Cabinet Documents
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Reference
~~(20) 9th meeting
(ze) quh
·
Date
19·2·70
The above-listed Cabinet document(s), which was/were enclosed on this
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CONFIDENTIAL
Z
11/5
Resubmit to his
good.
Office of the British
Chargé d'Affaires,
Enter
This seems revathle
I have as you a free?
Peking.
13 July, 1970.
Mr. Stevenon 23 2317 WAppeey1 2/2.
Dean Roberts, Mr. Magan Yes M
277
As foreshadowed in our telegram No. 253 I called on Consular Department
on 9 July with Christopher Hum We had by this time received your letter
of 2 July. I enclose a record of the meeting together with the speaking
notes which I followed closely.
2. For what it is worth, I had the impression that Kuan himself thought
our requests not unreasonable, and was at some pains to assure us that
the Shanghai authorities would give them proper consideration. We have
once or twice in the past possibly tended to base too much hope on such
innuendo from Consular Department, who presumably find the Shanghai
authorities as unpredictable as we do, but this interview did leave me
somewhat more optimistic than I had been before about the prospect of
getting at least something back for Mrs. Martin and Mr. MacBain. The
point about being able to find the medals is a new one, and suggests to
me that Kuan had already heard from Shanghai that some difficulty was
being experienced.
ཉ་
I think on the whole it is probably best to give Consular Department a
good margin of time in which to pursue this.
If you agree, I will leave the matter for two or three weeks, and then
make a further enquiry by telephone.
3. I am sending a copy of this letter and enclosures to Chris Howells in
Hong Kong.
Your
even,
LAST PAPER
P.J. Roberts, Esq.,
Far Eastern Department,
спуставнона
(A. C. Galsworthy)
Foreign and Commonwealth Office.
letterlo issue.
zje.
Pieme bly Immat
imish
CONFIDENTIAL
83
Record of seeting between Acting Consul and Consular
Department on 9 July
Hr. Galsworthy thanked Mr. Kuan for arraning a mesting so promptly. He
then spoke as in his notes. With regard to Mrs. Martin's property, he
added that while he had drawn the attention of Consular Department to
specific items on the list, he naturally hoped it would be; possible for
all the property to be returned to her. He asked whether Mr. Kuan had
any news of Mrs. Martin's property or of Mr. MacBain's medals. He handed
Mrs. Martin's list to Mr. Kuan,
=
Mr. Kuan recalled that he had discussed Mrs. Martin's property with Hr.
Davies at the previous meeting. He had conveyed Mr. Davies' requests to
the authorities in Jhanghai, and he believed they would deal with these
quickly. These matters were now in the hands of the local authorities
and he was sure they would give the requests consideration.
He undertook to convey the new points raised tâ the Shanghai
authorities. On the question of fir. Maokain's property, he had already
discussed this with Mr. Davies. He had taken note of the point about the
medals and already passed it on to the Shanghai authorities. He believed
they would give consideration to the return of the medals, if they could
be found. He undertook to transmit Mr. Galsworthy's requests to the
Shanghai authorities.
Mr. Galsworthy undertook to prepare a Chinese translation of the list of
hre, Kartin's belongings and send it to Consular Department.
ing notes for interica i41
9 July
Mrs. Martin's property
J
rt wit
Mrs. Connie Martin has (again) approached the Foreign and Commonwealth
Office in London to request further help on the question of her property
which she left behind in Shanghai. She has given us a list of the more
important items: I would like to pass a copy of this list to the
Consular Department and to request that they should pass this on to the
responsible authorities in Shanghai in case it asy be of some help in
dealing with the question. Consular Department will understand that,
since this is a list made from Mrs. Martin's nemory, it is not
necessarily complete, but it does contain the important items.
I would like at the same time to draw the attention of
the Consular Department to one or two items on the list: (1) The first
one is Mrs. Martin's jewellery. Mr. Davies mentioned this to Consular
Department in his interview of
7 Kay.
You will see that the first three items on the list
were taken from Mrs, Hartin in gaol, and, according to her, the
authorities at the time promised that they would be returned. Two of
them are Mrs. Martin's wedding ring and her engagement ring. I think
Consular Department will appreciate the personal significance which
these items hold for Mrs. Martin, and I would be grateful if special
consideration could mjuɔ given to then.
(11) The second is sshes, Mrs. Martin refers to an urn containing her
mother's and father's ashes and also to two others, one containing the
ashes of Mrs. Jessie Bryden which Mrs. Martin hopes can be put in the
Tsingpao Crematorium and one containing those of a Mr. Thomson which
Mrs. Martin states belongs to a friend of hers in Londen. Jon sul ar
Department will I think slso appreciate the value of these particular
items to Mrs. Martin, and I would like to ask that particular attention
might also be given to their return to her. They are of course of no
value to anyone else.
In connection with this, may I remind Consular Department of the request
put to then by Mr. Davies on 10 June asking whether the Shanghai
authorities would consider the return of Mr. MoBain's war medals. We
have since beard from him that when he was taken to prison be was
wearing a personal signet ring and a watch. Could I also ask for
consideration to be given to the return of these personal items to Mr.
MacBain.
If Mr. Kuan tells us that Mrs. Martin's property has been confiscated.
With regard to the confiscation of these goods I should like to reserve
the position of the British Government. at the same time I would like to
make a special request to the responsible authorities for consideration
to be given to the return to Mrs. Martin of her personal jewellery and
the ashes, which have such a special sentimental value to her, and which
would assist in making happy the last years of an old lady. I make this
request for the same reasons that Mr. Davies made the request of which I
have spoken with regard to the medals belonging to Mr. MacBain. Could I
also ask Jonsular Department if they would be willing to provide a
stateamt of the sentence against Mrs. Martín, including the reasons
given for the confiscation of her property. You will remember that you
provided us with such a atatement in the osse of Mr. MacBain,
(NA used)
Yu
13/7.
CONFIDENTIAL
aéjain Mr Rolete to
lets to see
(84)
Mr.X. Applevape
Tops.pe. 1419
Flag A
Flag B
Flag C
Mr. William McBain and Wollers
Mr. William HeBain was an employee of Mollers in Shanghai. In October,
1969 he was arrested by the Chinese. Mollers' previous dealings with the
Chinese
had been an unhappy series of requisitions and court cases. In trying to
discover the reasons for McBain's
arrest, it is necessary to know not only the charges against him, but
also those formerly brought against Mollers, to see if there is any
connection. Finally, KcBain's own position in Mollers needs to be
clarified.
Charges against Wollers
2. Messrs. Mollers is divided into the following
companies :
a. Mollers' Shipbuilding & Engineering forks Ltd. b. Mollers' Lande Ltd.
c. Shanghai Dockyards Ltd.
d. Mollers' (China) Ltd. (Chinese Company)
e. Moller Line (U.K.) Ltd.
f. Mollers' (Insurance) Ltd.
3. On 15 August 1952, on the orders of Chen Yi, Chairman of the Shanghai
Wilitary Affairs Commission, the property of Mollers' Shipbuilding &
Engineering Jorks in Shanghai was requisitioned 'for the sake of the
public interest of our country'. The order was only read to the company
representative, but the full text was given in the local
press.(1953/FC1461/6) At the time it as generally thought that the
requisition
was in retaliation for a Privy Council decision to
award ownership of certain aircraft to an American- owned company,
instead of to the People's Government (1952/FC 1461/20), Legally, the
Chinese were within their rights in requisitioning foreign property in
the national interest, provided compensation was paid. Of course, no
such compensation was ever paid.(1952/FC1461/17
Flag D
Flag E
Flag F
Flag G
4.
A case was brought against Mollers (China) Ltd by the ex-steward of the
8.8."Joan Moller" in 1951 for the alleged loss of goods when this ship
was scuttled by the British in 1941.After appealing against an unfavour-
able decision Mollers still had to pay damages when the case was
reopened (3 June 1952), although the sum was reduced.(FC 1102/50).
At this time also,both Mollers' Landa and Mollers' Wharves Ltd had
difficulty in collecting rentals owing them,
5.
In late 1952 Mollers' (China) Ltd were called to court on behalf of
Mollers' Shipbuilding & Engineering Works to answer allegations of
slipshod work in repairing a small government vessel, the "Yun Ching".
There were
accusations of false returna. Mollers lost the case and had to pay
(FC1461/24).
6.
On 4 Jan, 1954, the Woo Tong Shipbuilding Factory, an official
department of the Chinese government made substantial demands on Mollers
(China) Ltd, claiming a fantastic sum of £400,000,(PC1461/121) Mollers'
Director
in a letter dated 6 April 1956 says that the difference of
opinion is attributable to the fact that they contend that
various assets which were transferred to them under the terms of the
lease agreement, in consideration of their paying certain liabilities,
were subject to the requisition whereas our Principal's contention is
that the transfer or
sale was completed prior to the requisition,'
7.
The Chinese also requisitioned Husi Lodge. They offered compensation of
£3,815, whereas McBain, then Mollers' agent, valued the property at
nearer £100,000! (1956 FC1482/8). In 1957, "ollers' Lands claimed
further
compensation for property in Shanghai,
8.
It was clear all along that the Chinese had no intention o. paying
compensation. In 1959, the Shanghai Housing and Land Bureau issued a
list of vacant properties considered ownerless. Former Mollers'
properties were no doubt included (1959 FC1461/30). Finally, in November
1965 McBain was asked by the Chinese to close the Wollers' office in
Shanghai. This was subsequently done (1965 FCI 391
/5)
Flag H
Flag H
Flag I
Flag J
9.
CONFIDENTIAL Reference.
Peking Telegram of 11 June 1970 reports, in connection with McBain's
arrest, that Mollers owe a fine to the Chinese government 'for their
offence of illegal dealings in foreign exchange',
Charges against Mr. William McBain
Mr. McBain was arrested on 22-23 October 1969
the Shanghai security authorities. The charge was only vaguely specified
as 'for violation of the law'.
2.
by
However, in June 1970, the Chinese finally brought more specific
charges, as reported in Peking Telegram of
11 June. These charges were that McBain had :
a.Long carried out espionage activities under cover of
being a British merchant.
b.Committed offences of smuggling and illegal dealings
in foreign exchange.
c. Had not paid the fines for these crimes.
d.Also had illicit relations with Chinese women,
It had therefore 'been decided to deport him and confiscat his property
in Shanghai to compensate for the fine which
Vollers owe to the Chinese government for their offence of illegal
dealings in foreign exchange,'
Yr. McBain's connection with Mollers
Mollers themselves have apparently been trying to
make out that Wr. McBain was not connected with them. I
shall simply set out the pertinent information from the
files, which can, I think, allow of only one conclusión,
2. There are, unfortunately, no references to McBain in letters from
Mollers' head offices in London, or in
Hong Kong.
3. There are five letters for Mollers' (China) Ltd. in Shanghai signed
'W.R. McBain / Manager.' They are:
a. 31 December 1953 To Woo Tung Shipbuilding. Factory
Gives details of requisitioned property with
figures, and asks for the Chinese valuation, b. 6 January 1954: To
Mollers' (China) Ltd, Kanagement & Mollers' Ltd, Hong Kong, Secretarial
: Details of
meetings with Chinese on inventory and accounts,
Flag J
Flag K
Flag L
Flag M
Flag N
Flag F
Flag O
3. cont.
c. 12 January 1954: To Woo Tung Shipbuilding Factory.
On differ nces over valuation of lease.
d. 2 February 1954: To Mollers' Ltd, Management &
Secretarial. On inventories of Assets & accounts between
Woo Tung Factory and Mollers,
e. 15 February 1954: To Shanghai Military Control
Commission. On inventories of requisitioned Vollers' Shipbuilding &
Engineering Works,
It may be noted that there is no difference in the lay out, and in
particular, the typed signature and office, between the letters of Mr.
McBain and his predecessor, Captain
N. Penson, whose last letter is dated 10 June, 1953. It is
not unreasonable to assume, therefore, that Mr. McBain must have taken
over as manager of Mollers' (China) Ltd.
some time between June and December 1953.
4. There are also records of McBain's meetings with the Chinese, where
he appears to be -e the official representat- ive of Mollers;
a. 13 January 1954.Record of interview with official of
the Foreign Affairs Dept, asking for copy of the requisition order.
b. 28 January 1954. Record of meeting with Military Control Commissioner
at Woo Tung Factory.(Inventories & Accounts) McBain mentions: 'I gave
instructions for making up the present inventories'.
Further, there is a letter from the foo Tung Factory to Mollers' (China)
Ltd, which mentions 'details of which have
already been given to your responsible person,Mr McBain.'
Clearly, the Chinese did not doubt that they were dealing
with the legal representative of Mollera.
5.
There are the following references to VcBain in
diplomatic material from Peking, Shanghai and the F.0. : e.Shanghai
consulate to Peking: May 4 1954: 'Mr. W.R.
McBain celled on us on March 26 in connection with the
affairs of the last mentioned company (i.e. Mollers' Shipbuilding &
Engineering forks) & handed to us the voluminous correspondence,,
enclosed herein.(1.e.FCI461/121) Later, a certain lease is mentioned as
'signed by Captain Penson,(Mr. McBain's predecessor) as manager in
Shanghai of Mollers (China) Ltd.'
CONSILITIA IReference.
Flag P
Flag P
Flag J
Flag G
Flag G
Flag P
5. cont.
b.Shanghai Consulate to FED, 10 November 1165 :
'I was informed ..by Mr.McBain who represents the interests of Wollers
(China) Ltd...'
c.Shanghai to FED, 22 November 1965: 'Mr. McBain is
now well again and back at his office.'
Quite clearly, there was no shadow of suspicion regarding VcBain's
standing in diplomatic circles,
6. The possibility still remains that McBain was acting unauthorisedly,
and without the knowledge of those in charge of Mollers' afffairs,
whether in London or Hong Kong. However, there are numerous referfices
which prove that Mollers were fully informed of his activities.
a.McBain (manager) to woo Tung Shipbuilding Factory, 12 January 1954: We
have already written to our
Hong Kong Principals for instructions and shall reply to your letter.."
7.
b. Shanghai to FED, September 22 1956 : (Mr McBain) 'points
out one inaccuracy, which we understand he has brought to the attention
of Wollers in the UK'. The point at
issue was compensation for Huai lodge, with which problem Vr.M.Watson,
Director of Moller Line (U.K.) Ltd was at
that time closely involved,
c.FO to M.Watson, October 23 1956: ' I am to inform you
that Her Majesty's Consul-General in Shanghai has consult
-ed with Mollers' agent.Mr. McBain, and they are agreed that there is no
possibility of further negotiation about a price for Husi lodge,' If
McBain was uncommecte■
with Wollers it is incredible that such a statement
could have been written to the director without some
query !
d. Shanghai to FED, 10 November, 1965: Regarding the
closure of Mollers' Shanghai office, McBain is mentioned as saying he
would consult the firms Hong Kong office.' It continues: 'The reply from
the Hong Kong office stated that they would prefer to postpone closure.'
Mollers in Hong Kong were therefore fully cognisant of
McBain's activities.
Conclusion
The combined testimony of the above evidence shows that Mr. William
McBain was the official representative of Vollers in Shanghai for a long
period, and was recomised as such, not only by his employers, but by
both the
7. cont.
British and Chinese authorities concerned.
Adambor
(A.P.B. Lambert ) 24 June, 1970
Mr. Lambert
to I have
This note is
proving very useful,
to Jur Allan in
сор
Peking
я над
Mrs Martin, former employer
The Hong Kong Bank in
confined to us
Shanghai,
this week that Molles
had, in fact, been paying for McBain
regular salary right up to the time
of his arrest.
2.
Have HMG
One thought still occurs to me.
evre
had cause
to come to
any position (internally or publicly)
the
Good.
pa jou
рож
167
Chinese dispute
Publicly internally: no.
no.
with Makers ?
on
HMG tried to steer completely clear. Offrittore to Müller claris was
"trome not yet opportune for mesentation of claims to Chinese goût."(
see 1958
Fo leter May 24th
CONFIDENTIAL
TOP COPY
81
CYPHER CAT A
IMMEDIATE FOREIGN AND COMMONWEALTH OFFICE TELEGRAM NUMBER 267
TO PEKING
8 JULY 1970
(FEC 14/1)