last Karch. I am therefore obliged to ask you yet again to

transmit to your Government a request to supply details of the

charges, if any, against these British subjecte and in

accordance with international practice to allow consular access

to them.

7. As regards the British Mission in Peking, I have noted

with satisfaction that a number of exit visas have been granted

to members of the Mission staff in particular to Sir Donald

Hopson. There remain however the cases of Mr. Appleyard and

Mr. Hunter, two members of the diplomatic staff of the British

Mission and their families for whom the applications for exit

visas have been outstanding for a considerable time. Chinese

practice in delaying visas is in striking contrast to that of

my own Government which imposes no restrictions on the

movements in and out of the country of the staff of your own

/ Mission.

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Mission.

I must therefore press once again for the speedy

issue of exit visas for these two officers and their

families.

Far Eastern Department,

6 September, 1968.

CONFIDENTIAL

CONFIDENTIAL

BACKGROUND NOTE

British Subjects known or believed

to be detained in China

1. Kr. Anthony Grey, Reuters correspondent in Peking was placed

under house arrest on 21 July 1967 in retaliation for the arrest

and conviction of Haueh P'ing a correspondent of the New China News

Agency in Hong Kong on charges arising out of his activities during

"confrontation".

After repeated representations Sir Donald Hopson

and a member of his staff were allowed to visit Mr. Grey for about

twenty minutes on 23 April last in return for a special visit by

N.C.N.A. personnel to their former employees and other "patriotic

journalists" imprisoned in Hong Kong. No other visits have been

allowed. He is permitted to write to his family and fiancée. and to

receive letters from them. No charge of any sort has ever been

laid against Kr. Grey.

2. Mr. George att - was detained and placed under house arrest

in his hotel in Lunchow on 26 September, 1967. He was sentenced to

three years' imprisonment for alleged spying by a Lanchow court on

15 March this year. We believe that Mr. att may have been

indiscreet and have taken photographs in unauthorised places. Shortly

before his detention his wife was allowed to leave China; but she

was thoroughly searched at Shanghai before her departure when the

Chinese took from her photographs and letters from other engineers

in Lanchow to their families.

Mr. att's having been a spy.

LI

There is, however, no question of

Since Mr. Watt's arrest a Chinese

court in Peking has annulled Vickers-Zimmer's contract with the

CONFIDENTIAL

/Technical

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1

2

1

Technical Import Corporation and has fined the firm £650,000.

In July Mr. Watt was allowed to write to his wife and the Chinese

authorities have undertaken to allow him to receive mail from

his family and one food parcel per month through the Red Cross.

Mr. att has beer. told that he may write one letter each month

to his wife. The arrangements for this correspondence are in

hand but we have not yet had confirmation that they are working.

3. Kr. Norman Barrymaine, a freelance journalist, was detained

at Shanghai on 23 February this year, while a passenger aboard a

Polish vessel. He was probably seeking copy and possibly photo-

graphs for articles about conditions in China.

4. Hr. P. D. Crouch, the Second Officer of the "Demodocus", was

detained at Shanghai on 3 April this year when the ship sailed

without him. The Third Officer, who was detained at the same time,

has since been deported to Hong Kong. Both officers were accused

of espionage activities, and the Third Officer may have taken notes

of the numbers of Chinese naval vessels in Shanghai.

5.

Captain P. K. Will, was detained at Tang-ku, off Tien-tsin on

or about 3 July, 1968. He has been accused (probably justly) of

infringement of harbour regulations.

6.

Kr. J. F. Saunders, was detained at Shanghai on or about

15 August, 1968. He was the Third Mate of the "Rushpool", a

U.K.-registered vessel on charter to the Chinese. We do not know

the charge if any against Mr. Saunders but understand that he had

taken a note of the numbers of four Chinese naval vessels.

7. Mr. Eric Gordon and Family. On 3 February Mr. Gordon's

brother reported to us that although the family had been due to

/leave

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3-

leave China in early November last year no news had been

received from them since the end of October.

Mr. Gordon was

employed by the Chinese government-controlled Foreign Languages

Press in Peking. We have been unable to confirm that he has

been detained but it is the only possible conclusion in view of the

family's long silence.

8.

Reports reached the British Mission in Peking in March this

year that the following British subjects, all of whom were employed

by the Chinese authorities, had been detained towards the end of

1967.

Mrs. Epstein (née Elsie Fairfax Cholmondley)

Mr. Michael Shapiro

Mr. David Crook.

We have been unable to confirm the fact of their detention but

consider it extremely likely.

9. Krs. Gladys Yang. In mid-July this year our Mission in

Peking received unconfirmed reports that Mrs. Yang, who is British

by race and birth and married to a Chinese, had been detained about

a fortnight previously. She worked as a literary translator for

the Chinese. We have been unable to obtain confirmation of this

report.

Far Eastern Department

6 September, 1968.

CONFIDENTIAL

5/9

Sir D. Allen

Parliamentary Office

CONFIDENTIAL

MR. DAVID JOHNSTON

RECEIVED IN

ARCHIVES No 31 -3SEBU

E5/4.

14

Flag A

(103

Problem

Mr. David Johnston, the Manager of the Chartered Bank in

Shanghai, who had just handed over to his successor, was

arrested on a spying charge on 25 August (Peking telegram No. 778).

Despite repeated representations in Peking, the Chinese

authorities have given no information about the case and they

have refused permission for a member of the Mission to visit

Shanghai to see Mr. Johnston. (Peking telegram No. 810.)

We have to decide what further action should be taken, in

particular whether and in what form publicity should be given

to the case.

Recommendation

2.

a)

b)

I recommend that:-

Kr. Foley summon the Chinese Chargé d'Affaires on

6 September to repeat our demand for information and for

access to Mr. Johnston. The call would be used as the

occasion to inform the press about the facts of the case.

If for any reason the Chinese Chargé d'Affaires is

unavailable, a statement should be released to the press on

6 September and the Chargé d'Affaires summoned next week.

I attach a draft press statement and notes for unattributable

background comment. The Board of Trade concur.

/Background and Argument

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2 -

Flag

Flag

101

103

Background and Argument

3. Then Mr. Johnston was arrested, Mr. Cannings to whom he had

recently handed over the Bank's affairs, was present and heard

a warrant being read out in which it was alleged that

Mr. Johnston was guilty of "spying against the People's Republic

of China". When questioned about what the alleged acts of

espionage were, the Chinese replied "Why do you ask, you know

very well?". (Peking telegram No. 806). To our knowledge

there is no basis whatsoever for a charge of spying.

Mr. Johnston like other foreigners in Shanghai has acted with

great discretion. It seems likely, as the Chargé d'Affaires

in Peking has suggested, that the arrest is a result of the

"spy mania" which is prevalent in China, particularly Shanghai,

and that Mr. Johnston may in some way have been incriminated

by statements made under interrogation by a Belgian National,

Mr. van Roosbroeck, who was arrested a few weeks ago. The

Chartered Bank think the arrest might be connected with

difficulties which they have had with the Bank of China in

Singapore, details of which are contained in Foreign Office

telegram No. 807 to Peking. In my view this is unlikely to be

the main cause; but the Chinese might well use the arrest of

Mr. Johnston to try to put pressure on the Bank over the

Singapore affair,

4. In the case of other arrested British subjects, such as

Mr. Watt, of Vickers-Zimmer, we considered that publicity might

harm their chances of early release and we therefore discouraged

Experience over the past year would seem however to suggest

it.

that little

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Flag F

99

that little is to be gained by playing down affairs of this

kind. On the contrary, it seems possible that, in some cases

at least, the Chinese may be sensitive to accusations of

uncivilised behaviour. The Chargé d'Affaires in Peking has

recommended strongly that we make the facts of the case public.

(Peking telegram No. 786). He is supported by Sir Donald Hopson

to whom I have spoken. The Chartered Bank also accept the need

for publicity. The Board of Trade have acquiesced with some

reluctance. From the point of view of press and parliamentary

interest in this country it is clearly desirable that we should

not seem to be concealing the facts about a British subject in

difficulties in China, or about the conditions in which British

businessmen in China have to work. I therefore consider that

the press should be told about the case soon it is already

known to the foreign community in Shanghai and there is therefore

the possibility that it could become public at any time.

5. As regards the statement, I think it should be confined to

the bare facts as we know them, and contain no polemics. It

would probably be better to omit specific reference to charges

of espionage as this will merely give added currency to

unsubstantiated Chinese allegations. We could however say

unattributably that at the time of his arrest Hr. Johnston was

spoken of as "an enemy of the Chinese People's Republic". In

answer to questions, the Chartered Bank have agreed that they

too will make no reference to espionage. They will express

surprise at what has happened and add that their relations with

the Chinese have always been good, making no reference to

/ difficulties in

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4

Flag G

Flag H

difficulties in Singapore.

independently, they will

If the Singapore story should break

that they see no reason to connect

what happened in Singapore with the case of Mr. Johnston.

6. As to the way in which we inform the press, I think there

would be advantage in first summoning the Chinese Chargé

d'Affaires as we might well be asked why in the absence of

progress in Peking we had not broached the matter in London.

If however Kr. Shen Ping is for any reason unavailable, I

suggest that we should make the statement on Friday 6 September,

and then summon him next week. Apart from the possibility of

Mr. Johnston's arrest becoming known, the timing is also important

for another reason. The Chinese have invited representatives

of Simon Carves and I.C.I. to begin negotiations in Peking on

Tuesday 10 September with a view to completing the contract

for a plant being constructed by Simon Carves at Lanchow in

North-West China. In normal circumstances, we might well have

discouraged them from going but we, the Chargé d'Affaires in

Peking and the firms concerned consider that in the interests

of extricating other representatives of Simon Carves now in

China they should accept the invitation and try to finish their

business as quickly as possible. The Chargé d'Affaires was

consulted about the coincidence of a statement on Johnston and

the visit of Simon Carves and I.C.I. (F.0. telegram No. 811 to

Peking) and recommended (Peking tel No. 809) that the visit

should proceed but that the party should not leave until after

the statement on Mr. Johnston had been made. It would be

CONFIDENTIAL

/ possible

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- 5-

leave

possible for them to have on Monday 9 September or, if there

were a hold up, to tell the Chinese that their departure has

But they would like to go as soon as

had to be postponed.

possible.

7. When the arrest of Mr. Johnston becomes public, it will inevitably
stimulate questions about other British subjects in China, particularly
the British community in Shanghai. Following

the arrest of Mr. van Roosbroeck their morale suffered a serious

blow and it will have become still worse following Fr. Johnston's
arrest. The Chargé d'Affaires has recommended that publicity

be given to the cases of all British subjects who have applied

for exit visas and have not yet been allowed to leave.

Details are contained in the notes for unattributable background,

and a reference might be made to them by Mr. Foley.

The Hong Kong and Shanghai Bank representatives are in a special
category in that the Bank is negotiating with the Chinese in Hong Kong

to close the Shanghai branch or had it over to Chinese staff. In normal
circumstances, they would have preferred no publicity about exit visas,
but in view of Mr. Johnston's arrest they

accept that reference will have to be made to their representatives
whose exit visas are being withheld.

No mention will, of course,

be made of their negotiations for closure.

James Umay.

Copy to: Dr. I. Russell, BOARD OF TRADE.

CONFIDENTIAL

(James Murray)

5 September, 1968.

I agree with this and support the chrommendations.

Denis Allen: Za

PRESS STATEMENT

For issue after call of Chinese Chargé d'Affaires

on Mr. Foley

ON THE RECORD

The Chinese Chargé d'Affaires a.i., Kr. Shen Ping, was

to-day summoned by the Parliamentary Under-Secretary of State.

Kr. Foley's purpose was to raise the case of Kr. D. C. Johnston,

of the Chartered Bank in Shanghai. The facts of the case

are these.

Kr. Johnston was arrested by the Chinese authorities in Shanghai on 25
August. Repeated representations have been

made by the British Chargé d'Affaires in Peking, but the

Chinese authorities have failed to provide any information about

the charges against Mr. Johnston and have refused the application

by a member of the Office of the British Chargé d'Affaires in

Peking to visit Shanghai to see Mr. Johnston. Kr. Foley

expressed strong dissatisfaction at the attitude of the Chinese

Government, and repeated the demands made in Peking that

information be provided about the case and Consular access to

Kr. Johnston permitted. Mr. Shen Ping undertook to report

the representations to his Government.7

UNATTRIBUTABLE COMENT

The Chinese authorities have given us no information about any charges
against Mr. Johnston nor was the Chinese Chargé d'Affaires able to do
so, but we understand that at the time

/ of his arrest

.

- 2 -

+

-

of his arrest he was described as "an enemy of the Chinese

People's Republic".

an accusation.

We know of no justification for such

We are in close touch with the Chartered Bank who, like

us, know of no action by Hr. Johnston which might have

justified his arrest.

This

Mr. Foley also referred to the cases

of other British subjects detained in China.

REPLIES TO POSSIBLE QUESTIONS

point conter be

necuell in The Tamile

Kind

statement.

The British community in Shanghai consists of some 30

people, about one third of whom are of dual British/Chinese

nationality. No consular visits by members of the British

Mission have been permitted by the Chinese authorities since

their closure of the British Office in Shanghai in May 1967.

Apart from Mr. Johnstone, whose replacement is already in

Shanghai, two other families, the Selfs and the Croziers, both

working in the Hong Kong and Shanghai Banking Corporation's

Shanghai Branch, have been due to leave China for a considerable

time. The Chinese have, however, declined to give the

necessary exit visas. Mrs. Self is in poor health, and the

Croziers' daughter has suffered attacks of bronchitis.

would not be advisable for her to remain in Shanghai for

another winter.

ADVICE TOBRITISH SUBJECTS

It

We are ensuring that anyone whom we know to be contemplating

a visit to China is fully aware of the situation there.

Circumstances of visits, however, vary and each case must be

treated on its merita.

/ BACKGROUND

-3-

BACKGROUND

British subjects known or believed to be in detention,

apart from Mr. Johnston

placed under house arrest, 21 July, 1967.

(a) Hr. A. Grey

-

(b)

Mr. George Watt

-

detained in Lanchow 26 September, 1967.

Sentenced to 3 years imprisonment for

alleged spying, 15 March, 1968.

(c) Mr. Norman Barrymaine

(a) Mr. P. D. Crouch

(e) Capt. P. M. Will

(f) Mr. J. F. Saunders

-

detained at Shanghai, 23 February, 1968

detained at Shanghai, 3 April, 1968.

detained at Tangku on or about 3 June, 1968

detained at Shanghai on or about

15 August, 1968.

(Mr. Saunders was 3rd Mate of the "Rushpool", a U.K.

registered ship on charter to the Chinese.)

(g) Mr. Eric Gordon and family

-

no news of them since end

October, 1967.

(h) Mrs. Epstein (née Elsie Fairfax-Cholmondley) - reported

detained end 1967.

(1) Mr. Michael Shapiro

(j) Mr. David Crook

-

reported detained end 1967

Ħ

(k) Mrs. Gladys Yang

-

In mid-July the British Mission in

Peking received unconfirmed reports that

Mrs. Yang, who is a British Citizen by

birth, married to a Chinese had been

detained about a fortnight previously.

Enquiries to the Chinese authorities have

elicited no reply.

(112290) DL 391999 1000w 269 10w.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret. Secret.

Confidential,

Restricted.

Unclassified.

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Type 1 +

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Mr. David Johnston

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