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CONFIDENTIAL
Feziz
RC
ור
1:1300 19987
RELATIONS WITH CHINA
FE:3/22
78
PROBLEM
After the burning of our Office in Peking on 22 August
certain restrictions were placed on the Chinese Mission in
London. In retaliation, restrictions on our Mission in Peking
were made more stringent.
Since then, though the atmosphere
in Peking has improved a little, the restrictions remain and no progress
has been made in evacuating women and children or other members of the
staff in need of medical attention.
All members of the staff and their families, with the exception
of five schoolchildren on holiday, who have been allowed to leave, are
in effect being held as hostages. We have to decide whether and at what
stage action ahould be taken to
try to break the impasse. The immediate problem is whether to tighten
restrictions on the Chinese in London, to relax
them, or to leave them as they are.
RECOMMENDATION
2.
I recommend:-
(a) It would be premature to take a decision now on changing the
restrictions on the Chinese in London. If present trenda continue, the
matter
should be brought up for review in the week
beginning 23 October.
(b) In view of our failure to gain access to Mr.
Anthony Grey, the Reuters Correspondent under
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/house
rn?
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2
house arrest in Peking, the agreement of the
should
Hong Kong Government/be sought to suspend
further visits to members of the New China
News Agency (N.C.N.A.) in prison in Hong Kong.
ARGUMENT AND BACKGROUND
Restrictions
There has
3. The annexe to this submission gives details of the
measures in force against British subjects in China and
against the Chinese in London, together with possible methoda
of tightening or relaxing pressure on the Chinese.
been some improvement in our position in Peking in that
Queen's Messengers have been allowed in and out without
difficulty, and mail addressed to the Mission through the
open post is arriving. Restriction on movement, however,
remains very severe and the Chinese are deliberately dis-
criminating in this against Mr. Hopson. In general, life
remains extremely unpleasant and our staff in Peking are far
worse off than the Chinese staff in London. Mr. Anthony Grey,
the Reuters Correspondent, remaine incommunicado under house
arrest and persistent efforts to gain consular access to him
have failed. A British engineer, Mr. Watt, who is working on
the Vickers/Zimmer project at Lanchow, has been arrested, charged with
"illegal activities outside the contract" and
is being held at Lanchow.
4. In the wider context, the situation in China seems to
be developing in a direction which may be favourable to us.
The Secretary of State's message to the Chinese Foreign Minister
delivered on 2 September has not been rejected or castigated
/in the
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in the official press and the Chinese have thus so far
avoided making the acceptance of their demands over Hong
Kong a formal condition for an improvement in relations.
There is strong evidence to indicate that the Prime Minister,
Chou En-lai, and Chiang Ch'ing (Mrs. Mao Tse-tung) have both
condemned the burning of our Mission, though their condemnation
may be no more than an ex post facto attempt to dissociate
the Chinese Government from an action, the consequences of
which they have found embarrassing • Chou En-lai has also
reportedly taken direct charge of the running of the Foreign
Ministry and may be exerting some moderating influence on
Chinese policy in general. At the same time, the leaders of
the Cultural Revolution are making strenuous attempts to bring
the campaign under more control. In Hong Kong the situation
has calmed down The Chinese National Day has passed off
without very serious incident; and the Chinese have, in
accordance with their contract, restored the water supply
from the mainland to the Colony. There is good evidence that
an influential section of the local communist leadership,
probably reflecting more rational elements of the leadership
on the mainland, wishes to turn from the present policy of
violence to a longer-term propaganda campaign. If this trend
continues, there is therefore some hope of a gradual improve-
ment in our relations with China.
5. In such circumstances, women and children and those
requiring medical attention, and thereafter the rest of the
staff, might be allowed to leave Peking though there is no
/indication
+
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indication of how long this might take. A tightening of
restrictions on the Chinese in this country or other forms
of pressure against China would be likely to retard rather
than accelerate this process. In any case, action against
the Chinese Mission in London would be unlikely to affect
the Chinese Government except in the direction of making
life for our people in Peking still more unpleasant. Other
forms of pressure, e.g. economic sanctions or the blocking
of Chinese sterling in London, would be very difficult to
carry out and unlikely to be helpful.
6.
The
Admittedly, if further measures were taken against us
in Peking, tougher measures here would become essential.
least objectionable from the point of view of our Mission in
Peking might be to P.N.G. some of the Chinese. The Indonesians
did so, and the Chinese responded by expelling two of the
Indonesian Mission in Peking; but we cannot be sure this
would happen to us.
7. On the other hand, if we are right in our deduction that
the trend, both on the mainland and in Hong Kong, is now more
favourable, a relaxation of restrictions might be better
calculated to secure our most important objective of freedom
of exit for our staff in Peking. It would be very welcome to
the Home Office, since nearly 90 members of the uniformed and Special
Branches are employed on surveillance and allied tasks,
this being the minimum necessary for effective functioning.
We understand that the Home Secretary may shortly approach us
about a reduction in police duties. A relaxation would also
/be
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Flag ▲
be welcome to businessmen. The Chinese have already
claimed (without real justification) that police restric-
tions are making it difficult for their Commercial Office
to function and are implying to British businessmen that a
drop in Sino-British trade would be attributable to this
cause. Any immediate unilateral relaxation of restrictions
would, however, be very difficult to justify in Parliament
and before public opinion. In his letter of 20 September,
Kr. Hopson has argued that we should now tell the Chinese
that we had decided on a relaxation but on the strict under-
standing that reciprocity would be given in Faking. There
is the objection that, if there was no reciprocal relaxation
in Peking, we might even so have difficulty in persuading
the Home Office to agree to a re-imposition of measures.
any case, I consider that relaxation at this time would be
premature. We should first await the result, if any, of
the approach of the Pakistan Minister of Information to the
Chinese leaders about the release of our women and children,
which he is making at the Secretary of State's request; and
we should allow ourselves a little time to see whether the
present trend of events in China and Hong Kong continues.
For this reason it is recommended that, except in the parti-
cular case of Mr. Grey, and in a minor matter concerning Chinese
nationals in this country (discussed below), no
action to tighten or relax restrictions should be taken
pending a further review in about two weeks time.
/Mr. Grey
In
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Mr. Grey
8.
Representations have been made on a number of occasions
to secure consular access to Mr. Grey. The latest followed
a visit to an N.C.N.▲. journalist imprisoned in Hong Kong
by his wife and two colleagues. Mr. Hopson has recommended
that in the absence of any progress over Mr. Grey, future
visits to N.C.N.A. personnel under detention in Hong Kong
should be stopped. This may involve some change in the regu-
lations as, normally, sentenced prisoners are entitled to
monthly visits. We could ask the Hong Kong Goverment to
suspend visits for the time being, but the decision will have
to rest with them in the light of local conditions. Mr. Rodgers
has invited Mr. Grey's mother to call on him on 19 October.
Mr. Chipp of Reuters, who will himself deliver the invitation
to Mrs Grey, will explain the present position and say that
we consider publicity in this country on her son's behalf
might be harmful to him. Mr. Chipp will also speak to the
local newspaper in Norwich (where Mr. Grey used to work) on
the same lines.
Mr. Watt
9. Mr. Hopson has already asked for information and for
consular access to Mr. Watt (paragraph 3 above). Unfortunately,
on past form, it is unlikely that he will obtain either. It
is still not clear why Kr. Watt has been arrested. The most
likely reason is that when his wife left China recently, the
Chinese Custome found in her possession various private letters from
engineers in Lanchow, a report from the leader to the
/firm
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firm, and some photographs of Lanchow Airport. Mr. Deckart,
a German engineer, also working on the project, was arrested
some weeks ago for "suspected espionage". Vickers/Zimmer
are asking the Chinese State Corporation concerned (Techimport)
to intervene with the authorities on behalf of Messrs. Watt
and Deckart. We do not consider that any retaliatory action
against Chinese nationals in this country would be likely to
help Mr. Watt's position. We are, however, asking the Home
Office to request Chief Constables in the course of their
Autumn census of foreign nationals to see how many Chinese
they have on their books, against the possibility of future
action against Chinese nationals as a whole.
Love Murray.
J
(James Murray) 3 October, 1967
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Mi. Wilder
Бла
+
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ANNEX
RELATIONS WITH CHINA
easureb in force against British Subjects in Chipa
(a) The British Office
Our office buildings in Peking were almost totally
destroyed, although it is still possible to use the
diplomatic wireless equipment. The Chargé d'Affaires'
house was also ransacked but some rooms are being
repared for use by the Chinese staff of our Mission.
The Mission itself is now operating from one of the
residential flats in a large diplomatic compound
about a quarter of a mile from the Office buildings.
Our Office compound and buildings in Shanghai have
been acized.
(b) Kovement
The members of our Mission are restricted to
the area of the diplomatic compound and the Office
Block together with the road connecting the two places. To go anywhere
outside this area (including to other foreign diplomatic missions) they
must ask
permission 48 hours in advance.
Some of their
requests have been approved but many others, including social calls on
foreign ambassadors, have been refused. All the members of the Mission
require exit visas from
the Chinese Government before leaving the country. Applications for
visas for all members of the staff (and later for women and children and
for ten individuals on medical grounds) have been made, but
the only exit visas granted since the events of
/22 August
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2
22 August have been for five schoolchildren who vare
spending their holidays in Peking.
(c) Baggage
Since May the Chinese have refused to pack or
transport the belongings of any members of our
Mission. There has, however, been no serious delay
to incoming goods.
(d) Reuters
The Reuters correspondent in Peking has been under
house arrest since 21 July and incommunicado since
19 August. Our Office in Peking have made a number
of requests for accesa, the latest shortly after a
New China News Agency journalist imprisoned in Hong
Kong had been visited by his wife and representatives
of the Agency but there has so far been no reply.
(e) Engineers
One British engineer (Mr. Watt) working for
Vickers, who are building a plant in Lanchow (north-
west China) is being held under arrest by the Chinese
in Lanchow pending investigation into letters and
documents which the Chinese say that his wife was
trying to snuggle out of China. (A German engineer
working on the same Vickers plant is also being held
for alleged "illegal activities".)
(f) Banks
The Shanghai Branch Office of the Hong Kong and
Shanghai Bank has been having difficulties about exit
and entry visas for some time but their problems do
not seem to have worsened recently.
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/2.
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2.
With the exception of exit visas, which the Chinese have
required for many years, the restrictions placed on our Mission
were said by the Chinese to be in retaliation for those which
we placed on the Chinese in London on 22 August. These
restrictions and a generally uncooperative attitude make life
for our Mission in Peking extremely hard, but their station
does not seem to have worsened appreciably since the end of
August. The position of the Reuters correspondent has likewise
remained unchanged for over a month. Mr. Watt's position has,
however, worsened. He was detained in Peking from 7 September;
on 26 September he was taken to Lanchow "under arrest for
illegal activities outside the contract".
Measures in force against the Chinese in London
3. (a) The Chinese Mission
On 22 August the Chinese Charge was told that the
following restrictions would be applied immediately:
(1) No Chinese officials would be allowed to
leave this country without obtaining exit
visas from the Foreign Office.
(11) The movement of Chinese officials would be
restricted to an area of five miles radius
from Karble Arch.
To travel outside this
area it would be necessary to inform the
Foreign Office 48 hours in advance.
(111) The Chinese Mission should cease immediately
using its diplomatic wireless facilities.
(b) N.C.N.A.
All members of the N.C.N.A. office are subjected
to the restrictions at (1) and (11) above.
Since July
/wo
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4.
we have also postponed approval for any new entry
visas for members of the N.C.N.A. office and have also
Those
given no response to applications by three members of
the Office to renew their residence permits.
concerned are, however, still in this country.
(c) Bank of China
Expatriate officials of the Bank of China are also
subjected to the restrictions at (1) and (ii) above.
We have also postponed approval for entry visas for the Manager and
Deputy Manager of the Bank of China (both
of whom were in China on leave) in retaliation for
difficulties created by the Chinese over entry and
exit visas for the Manager and Deputy Manager in
Shanghai of the Hong Kong and Shanghai Bank.
Enforcement of the restrictions applied against the
Chinese has put a heavy burden on the strained resources of
the Special and the Uniformed Branches of the police.
A total of 88 police and Special Branch officers are employed
full time on watching and protecting the Chinese Office.
New Measures which could be applied against the Chinose
5. The following are some measures which we could apply
against the Chinese if we wished to tighten our restrictions,
together with an indication of the difficulties involved.
(a) Movement
We could either confine the Chinese to their
respective office buildings or to certain specific
streets between their offices and residences, thus
bringing them into line with the restrictions on our
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/people
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people in Peking.
Such restrictions would be no harder
to enforce than the present ones.
(b) Baggage
We could delay indefinitely Customs clearance for
all incoming Chinese baggage. It would be administratively
harder but possible to do the same for outgoing baggage,
although it is unlikely that the Chinese have much of
this.
(c) Buildings
We might be able to evict the Chinese Commercial
department from its office building in retaliation
for their confiscation of our Office in Shanghai.
This building is on Crown lease. All their other
buildings are, however, leased privately from different
landlords and there would be insuperable administrative
and probably legal difficulties in curtailing the leases.
It would also probably be necessary to force an entry
and physically eject the Chinese in order to dispossess
them. To do so would first require a withdrawal by legislative procedure
of the personal immunity ɗ those
of
concerned. Even were this done, the Chinese would not
accept it and a violent incident similar to or worse
than the "Battle of Portland Place" would probably occur.
(d) Expulsion
We could declare P.N.G. some or all of the Chinese
Mission, selecting if necessary the six major culprits
of the "Battle of Portland Place" on 29 August. It is
unlikely that those declared P.N.G. would refuse to go
but, if they did, and took refuge in the Chinese Mission,
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we would be faced with the problem of ather leaving
them there, or removing them by force or expelling them
by force if they ever emerged from the building.
(e)
Harassment of Ordinary Chinese Citizens in the
United Kingdom
There are about 2,500 Chinese in this country with
Chinese People's Republic passports, who are registered
as aliens with the police.
It would be possible to
trace all such persons, to arrange for the police to
call on them and even possibly require them to report
to a police station. The labour involved in tracing
them would be considerable, while calling on them or
requiring them to report at police stations would add
a further burden to police duties. The Home Office
are most reluctant to do any preliminary work unless
we wish to propose some specific move against Chinese
citizens as a whole. They might, however, be prepared
to ask Chief Constables in the course of their annual
autumn census of aliens to see how many Chinese they
have on their books. Action against ordinary Chinese
citizens in this country would be unlikely to influence
the Chinese Government to treat British subjects in
China more reasonably; indeed it might cause them to
be more unpleasant to businessmen and others. For this
reason and because we are likely to encounter strong
Home Office opposition, we do not think that harassment
of the kind referred to would be worthwhile.
(f) Sterling
The Chinese use sterling for much of their foreign
trade,
At present they hold about £10 million in sterling
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in London, but the figure fluctuates and is sometimes
much higher.
Theoretically we could freeze these sterling
holdings, but in practice there are very strong reasons
against doing so. To act against Chinese sterling holders
would affect the confidence of other sterling holders
and also their trade, in sterling with China. It
would require the use of special legislation which the
Treasury are only permitted to call into play when
there is a threat from the country concerned to British
economic interests.
6. An additional and major problem involving all further
restrictions on the Chinese here is the effect this would have
on our Mission in Peking. In almost all cases this would make
their position even worse than it is at present. Realising
this, Mr. Hopson has advised strongly against further restric-
tions. The only exception is (d) which might well cause the
Chinese to act similarly against an equal number of our staff
in Peking. By expelling the Chinese Chargé and another diplomat
from Djakarta, the Indonesians secured the expulsion of their
Charge and a member of his staff from Peking.
Possible Wave of Relaxing Pressure on the Chinese in London
7.
(a) Travel
We could increase the travel limits either to the
direct equivalent of former Chinese practice in Peking,
1.e. 12 miles, or to the previous London limit of
35 miles.
This could also be done selectively by
e.g. first relaxing the restriction on the Bank of China
or N.C.N.A.
(b) Diplomatic wireless
We are now able to use our own diplomatic wireless
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in Peking again and there is no particular reason why
the theoretical restriction on the Chinese here