NEWS DEPT.

CONSULAR DEPT.

E.R.D.

1.R.D.

I.P.D.

RESEARCH DEPT.

QQQQQ

RECEIVED IN ARCHIVES No.31

- 9 SEP 1968

Fesly

TELEGRAM SECTION Room 124 K.C.S

Communications Department

TO:

F2514.

FED

lu

3

109 YTC/1

Copy/ies of the following telegram has/have been sent

822 To Peking

Dr. 1. Russell

بر

B/Trade

Ha

(CREA)

(Signed)...

(Department).

(Date)..

Action taken in Communications Department:

(Initials).

Z....

(Date)..

9/9...

AFTER ACTION THIS FORM SHOULD BE SENT TO

THE APPROPRIATE ARCHIVES DIVISION FOR RETENTION

Fes/4.

100

EN CLAIR

IMMEDIATE FOREIGN UFFICE TO PEKING

TELNO, 822

LASSIFIED

6 SEPTEMBER, 1968

(F)

بعلم

ADDRESSED TO PEKING TELEGRAM NO 822 OF 6 SEPTENDER REPEATED FOR

INPORMATION TO HONG KONG POLAD SINGAPORE

MIP TE JOHNSTON

THE FOLLOWING 18 TEXT OF STATEMENT |-

** THE CHINESE CHARGE D'AFFAIRES A.19, HR SHEN PING, WAS TODAY SUMMONED
BY THE PARLIAMENTARY UNDER-SECRETARY OF STATE. MR FOLEY'S PURPOSE WAS TO
RAIBE THE CABE OF HR D♫C. JOHNSTON, OF THE CHARTERED BANK IN SHANGHAI,
THE FACTS OF THE CASE ARE THESE. HR JOHNSTON WAS ARRESTED BY THE CHINESE
AUTHORITIES IN SHANGHAI ON 25 AUGUST, REPEATED REPRESENTATIONS HAVE BEEN
MADE BY THE BRITISH CHARGE D'AFFAIRES IN PEXING, 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 CHARGE D'AFFAIRES IN PEKING TO VISIT SHANGHAI TO
SEE MR JOHNSTON. MR FOLEY EXPRESSED STRONG DISSATI 8- FACTION AT THE
ATTITUDE OF THE CHINESE GOVERNMENT, AND REPEATED THE DEMANDS MADE IN
PIKENG THAT INFORMATION BE PROVIDED ABOUT THE CASE AND CONSULAR ACCESS
TO MR JOHNSTON PERMITTED, MR FOLEY ALSO REFERRED TO THE CASES OF OTHER
BRITISH SUBJECTS DETAINED IN CHINA, HE ALSO TOOK UP THE QUESTION OF THE
OUTSTANDING EXIT VISAS FOR MEMBERS OF OUR MISSION, THERE ARE SEVEN OUTST
ALL TOLB,

THE MEETING LASTED HALF AN HOUR'.

2. ASKED WHAT MR SHEN PING SAID IN REPLY, THE SPOKESMAN BAID

** MR SHEN PING TOOK NOTE''.

3. BEEN | FT.

DEPARTMENTAL DISTRIBUTION

BUDKA

F.E.D.

NEWS DEPT.

CONSULAR DEPT.

E.R.D.

I.R.D.

RESEARCH DEPT. I.P.D.

1

メメ

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

DEPARTMENT

FC514 X.X

SECURITY CLASSIFICATION PRIORITY MARKINGS

Unclassified

Immediate →Priority

Routine

* Date and time (G.M.T.) telegram should

reach addresson(s).

6 SEP 1988

(Date)..

1718

Despatched

109

[B]

LILI Y

PRIVACY MARKING

In Confidence

En Clair Code Apher

Draft Telegram to :-

Peking

No.

(Date)

Auditor

822

6/9

MIPT

Repeat to

Hong Kong

Polad Spore

Saving to:-

Distributi Departmental F.E.D., News, Consular, ERD, IRD, Research.
J.P.D.

Copies to:-

Dr. I. Russell, C.R.E.D.

Board of Trade

0₤1162016

Security classification" -if any

[Securi

[

Privacy marking -if any

1

[Codeword-if any]

-- --1111

LIJJ-IIJLE.-----

ד

UNCLASSIFIED

PEKING

Addressed to

telegram No.......

822

(date)

619

And to

repeated for information to

LAT

Saving to

HONG KONG, POLAD SINGAPORE

JOHNSTON

The FOLLOWING IS TEXT OF STATEMENT: -

The Chinese Chargé d'Affaires 8.i., Mr. Shen

Ping, was today summoned by the Parliamentary Under-

Secretary of State. Mr. Foley's purpose was to

raise the case of Mr. D. C. Johnston,

of the Chartered

Bank in Shanghai. The facts of the case are these.

Mr. 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,

Foley expressed strong dissatisfaction at the

Mr.

attitude of the Chinese Government, and repeated the

demands made in Peking that information be provided

about the case and Consular access to Mr. Johnston

permitted.

representatie:

Me, Shen Ping undertook to report the

nie Government, 7

мак

032717 E.W.& S.,Ltd. 164m 3/67.

No Foley also refund to the cases of other Britial subject's defament in
China. He also

Footer of the question of the outstanding exit noos

Los ankombers

BUTSTANDING

of

There are

SEULIA

out missum

outstanding all bla.

The meeting lasted half

ane hour.

2. Asked what Mr Shawn Pung sand in refly,

the spokesman saine "To Shew Ping tool wote".

3. See. m.i.f.t.

dhost

[c]

NOTHING TO BE WRITTEN IN THIS MARGIN

CYPHER/CAT A

Tup. copyon Fe6/3212

IMMEDIATE FOREIGN OFFICE

TELEGRAM NUMBER 821

CONFIDENT | AL

108

TO PEKING

·6 SEPTEMBER 1969.

(F)

~ SEP 1508

CONFIDENTIAL.

ADDRESSED TO PEKING TELEGRAM NUMBER 821 OF 6 SEPTEMBER REPEATED FOR
INFORMATION TO HONG KONG POLAD SINGAPORE.

YOUR TELEGRAM NUMBER 823: JOHYSTON,

THE STATEMENT IN MY IMMEDIATELY FOLLOWING TELEGRAM WAS MADE BY NEWS
DEPARTMENT AT 12.38 TODAY FOLLOWING A CALL OF THE CHINESE CHARGE
D'AFFAIRES ON PARLIAMENTARY UNDER-SECRETARY. (A REPORT OF THE CALL IS
BEING TELEGRAPHED TO YOU SEPARATELY).

2. AT INSISTENCE OF 1.0.1. AND SIMON CARVES, WE AGREED THAT THE GROUP
SHOULD LEAVE THIS MORNING. WE ARRANGED HOWEVER TO BE. IN TOUCH WITH THEM
AT KARACHI OR DACCA, IF NECESSARY.

3.

DETAILS OF THE GROUP IN MY TELEGRAM NUMBER 824.

110

SO SF A

+

DEPARTMENTAL DISTRIBUTION

F.E.D.

NEWS DEPT.

CONSULAR DEPT.

E.R.D.

1.A.D.

I.P.D.

RESEARCH DEPT.

CONFIDENTIAL

EN CLAIR

FRIORITY PEKING TO FOREIGN OFFICE

CY COR

TELNO 824

6 SEPTEMBER, 1968

UNCLASSIFIED

167

[ARCHIV

ADDRESSED TO FOREIGN OFFICE TELEGRAM NO. 824 6 SEPTENDRECEIVED REPEATED
FOR INFORMATION TO HONG KONG.

JOHNSTON.

- 9 SEP 1968

F05/4

MRS. JOHNSTON HAS ASKED US WHETHER WE CAN TELL HER WHO EROKE THE NEWS TO
HIS MOTHER AND HOW SHE REACTED TO THIS.

FIRS. JOHNSTON IS APPARENTLY STANDING UP WELL TO THE STRAIN OF A VERY
DIFFICULT SITUATION BUT IT WOULD BE HELPFUL TO HER IF YOU COULD ENABLE
US TO ANSWER THESE QUESTIONS.

2. MRS JOHNSTON IS NOW APPLYING SEPARATELY FOR HER EXIT VI SA. WE HAVE
SENT A NOTE TO CONSULAR DEPARTMENT SUPPORTING THIS APPLICATION,

MR. CRADOCK

FILES

F.E.D.

CONSULAR DEPT

NEWS DEPT.

بہار

Fe6/32(10

Top

эта сору

on fe

CONFIDENTIAL

Cypher/Cat A

6/3211.

IMMEDIATE PEKING TO FOREIGN OFFICE

Telno 823

CONFIDENTIAL

6 September, 1968

My telegram No. 809: Simon Carves.

. RECEIVED IN

ARCHIVES No.31 -9 SEP 1968

574

Fes/4...

Mr. and Mrs. Hill and Ansell arrived Peking on

5 September. Mrs. Hill will continue her journey to the

U.K. on 7 September. The two men have come to meet

!

J

106

Simon Carves party from London, whom the Chinese say will arrive

in Peking on 7 September.

2.

Grateful to know urgently whether this information is correct, and if so
what has been decided regarding publicity about Johnston (my telegram
No: 810).

Mr. Cradock

FILES

F.E.D.

uuuuu

+

103

ADVANCE COPIES SENT.

CONFIDENTIAL

E514

$82918

FOREIGN OFFICE, 8.1.1.

29 August, 1968.

FC514

I understand from Mr. Murray that he promised to let you have the text
of the report from Peking after Mr. Grudoak's meeting with the Consular
Department of the Chinese Ministry of Foreign Affaire following Kr.
Johnston's detention. The relevant telegram reads as follows:-

"After repeated requests I finally obtained an interview this afternoon
with Mr. Lao, Deputy Divicional Chief of Consular Department. This was 8
low level reception, but we were hardly in a position to choose.

2. I reported the news I had received from Shanghai on Johnston's
arrest, expressing my serious concern, and adding that I was sure it
would be shared by Her Majesty's Government, I explained Johnston's
position as manager of branch whose hand-over to Cannings had been
formally socepted and who had applied with his wife in June for exit
visas. I referred also to circumstances of his mother's illness and of
his own medical complaints which, according to the Chinese doctors,
would probably require an operation. I gave kr. Lao a copy of the
medicul certificate on this last point.

3. I requested immediate information on charges, if any, against
Johnston, and persiusion for a representative of this office to travel
immediately to Shanghai to talk to him.

4. Mr. Leo said he would inform me after investigation to relevant
departments. I stressed the urgency of the matter and asked when a reply
could be expected.

He repeated his phrase and was unable to say how long a reply would
take. I said that I expected his reply within a few days at the very
latest.

15.

P. H. Taggart, Esq.,

The Chartered Bank,

38 Bishopsgate,

London, E.C.2.

ب تیرا

105

AN

5. This failure to give an immediate reply should not necessarily be
construed as malevolence or deliberate delay on representatives part. It
more probably reflecta disarray of it all. I had impression that Lae was
genuinely not fully informed. we shall keep up enquiries by telephone
and, failing a reply, seek another interview in a few days time. da
ramain in touch with Shanghai by telephone."

( E. J. Sharland ) Far Eastern Department

GENERAL MANAGERS'

OFFICE

104

TELEPHONE 01-588 36868

PHT/BT

THE CHARTERED BANK

38, BISHOPSGATE LONDON, E. c. 2

26th August, 1968

RED IN

*.31

18

Festa

Dear Mr Sharland,

Please hand the bearer of this note a copy

of the Peking telegram re Johnston about which I rang

you earlier this morning.

Yours sincerely,

Hig

PH Taggart

Assistant General Manager.

E. J. Sæland Esquire,

Foreign Office,

Downing Street,

S. W. L.

Action taken

Re

CONFIDENTIAL

Cypher/Cat A

PRIORITY PEKING

TO

Telno 810

FOREIGN OFFICE

1 September 1968

roz

{ RECEIVED IN

·A· No. 1 ✓ 3!

-- 3 SE 368

4

101 T02?

CONFIDENTIAL

Mressed to Foreign Office telegram No. 810 of 1 Septemb Repeated for
information to Hong Kong.

Your telegrams Nos. 806 and 807: Johnston

I agree Johnston's arrest is connected with Singapore affair, though
Shanghai spy-mania could be a logical reason in itself. It is obviously
advisable for Chartered Bank to do all they can to extricate themselves
from the too prominent role they have played in Singapore. [?go omitted]
Other banks there help by furnishing Bank of China funds to substitute
in whole or even in part for 7 million from Bank of China account with

Chartered Bank. F23/24 160

2.

99

I do not think this effects the arguments for publicity given in my
telegrams Nos. 764 and 786 and I agree that we cannot hold the present
situation long. For example, a member of the Italian Trade Kission was
in Shanghai at the time of the arrest and knows the facts. He has agreed
to keep quiet but soon other less amenable foreign visitors to Shanghai
will get . the story.

+

3. I must add that in a recent telephone talk Cannings said he was
rather worried that publicity might mean a lot of letters criticicing
the Chinese would be sent to the Shanghai community. He may have been
intimating that the community are having doubts about the value of
publicity for them. I understand their hesitation but regard the
arguments in favour as overriding. Publicity abroad and in commercial
world could be specially useful.

4.

Our efforts here to obtain information have so far proved fruitless. We
have telephoned Consular Deparment daily since 26 August. On 29 August
Garside sought an interview but was told on 31 August that Consular
Department had no time to see him. His travel application to visit
Johnston in Shanghai made on 27 August ras refused on 29 August. There
seems no reason therefore to delay publicity after 3 September.

5.

I assume you will ensure that before publicity breaks Johnston's mother
is informed.

Chnst

Foreign Office pass Routine Hong Kong.

Mr. Cradock

[Repeated as requested]

DEPARTUENTAL DISTRIBUTION

F.E.D.

Consular Dept.

E.R.D.

3.3.A.D.

News Dept.

NNNNN

CONFIDENTIAL

CYPHER/CAT A

PRIORITY FOREIGN OFFICE

TELEGRAM NUMBER 807

CONFIDENTIAL

TO PEKING 29 AUGUST 1968

(FT

CONFIDENTIAL.

ADDRESSED TO PEKING TELEGRAM NUMBER 807 OF 29 AUGUST

RF I HONG KONG AND BHC SINGAPORE.

M.I.P.T. : JOHNSTON,

101

102

RECEIVED IN

! ARCHIVES No.3*!

- 3 SEP 1968

THE DETAILS WHICH THE CHARTERED BANK HAVE PROVIDED ABOUT THE AFFAIR ARE
THESE.

SOME TWO YEARS AGO, WHEN THE BANK OF CHINA IN SINGAPORE WERE IN SERIOUS
STRAITS, THEY RAISED A LOAN FROM THE BANK NEGARA (CENTRAL BANK) IN
SINGAPORE, MORGAGING THEIR PREMISES. EFFORTS OF THE BANK NEGARA TO
RECOVER THE LOAN FAILED, THEY THEREFORE HAD TO RECOURSE TO THE COURTS
AND OBTAINED A 'GARNISHEE** ORDER, 1.E. AN ORDER ATTACHING MONEY
DEPOSITED BY THE BANK OF CHINA WITH OTHER BANKS IN SINGAPORE. UNDER THE
ORDER SOME SEVEN OR EIGHT BANKS IN SINGAPORE WERE REQUIRED TO PAY
SUBSTANTIAL SUMS HELD BY THEM IN DEPOSIT FOR THE BANK OF CHINA INTO THE
SHERIFF'S OFFICE. THE CHARTERED BANK, THE LEADING BANK IN SINGAPORE,
FEARING THAT NEWS OF LARGE PAYMENTS BY NUMBERS OF BANKS IN SINGAPORE
MIGHT TO A GENERAL RUN ON BANKS BY SMALL DEPOSITORS, INDICATED THAT THEY
HAD ENOUGH FUNDS IN THEIR BANK OF CHINA ACCOUNT TO MEET THE WHOLE SUM
INVOLVED (SEVEN MILLION SINGAPORE DOLLARS), AND BY ARRANGEMENT PAID THIS
SUM INTO THE SHERIFF'S OFFICE (WHERE IT STILL REMAINS). THE LOCAL
MANAGER OF THE BANK OF CHINA AT FIRST THANKED THEM FOR THEIR LEAD IN
HANDLING THIS CRISIS: BUT LATER ON, CLEARLY ON INSTRUCTIONS FROM PEKING,
HE CONDEMNED THE GARNISHEE'' ORDER AS ILLEGAL AND CRITICISED THE
CHARTERED BANK SEVERELY FOR THEIR PARTICIPATION IN AN IMPERIALIST PLOT**

CONFIDENTIAL

12......

CONFIDENTIAL

2

2. THE CHARTERED BANK MAINTAIN THAT THEY HAD NO ALTERNATIVE BUT TO OBEY
THE GARNISHEE** ORDER, BUT THEY RECOGNISE WITH THE BENEFIT OF HINDSIGHT
THAT IT WAS PERHAPS UNWISE FOR THEM TO TAKE THE LEAD IN THE WAY THEY
DID. THEY HAVE SO FAR DERIVED SOME CONSOLATION FROM THE FACT THAT THE
BANK OF CHINA IN SINGAPORE HAS NOT YET ATTEMPTED TO PUSH THINGS THERE TO
THE LIMIT. THIS THEY COULD DO BY PRESENTING THE CHARTERED BANK WITH A
CHEQUE IN RESPECT OF THE SUM WHICH THE CHARTERED BANK HAVE ALREADY PAID
INTO THE SHERIFF'S OFFICE. THE CHARTERED BANK WOULD HAVE TO REFUSE
PAYMENT OF THE CHEQUE, AND WOULD AT THE VERY LEAST EXPOSE THEMSELVES TO
FURTHER CRITICISM FROM THE BANK OF CHINA FOR NOT ACCORDING OVERDRAFT
FACILITIES.

SO SF A

DEPAKTALAMA DISTRIBUTION

F.O.

2.2.D.

Consulent DEFT.

3.R.D.

4.2.A.D.

BE.... JEET.

c.o.

BO NG DEPT.

CONFIDENTIAL

Registry No.

DEPARTMENT

Faclet

SECURITY CLASSIFICATION

PRIORITY MARKINGS

(Date)..

Top Secret

* Date and time (G.M.T.) telegram should

reach addressee(s).

---

ECIPHER

Confidential

Priority

Unclassified

PRIVACY MARKING

[Securit

In Confidence

'Security classification"

if any

CONFIDENTIAL

En Plair. Lode

[

Cypher

Privacy marking -if any

[Codeword-if any]

702

-------

--

NOTHING TO BE WRITTEN IN THIS MARGIN

16452

Buk

768

Draft Telegram to:-

Peking

(Date)

And to:-

Repeat to, Hong Kong

807

Addressed to

telegram No.....

And to

PEKING

807

(date)

29/8

398 repeated for information to

BHC Singapore

Saving to:- Labide by thems in deforrit for

the Bank of Chine

Distribution:-

Departmental

F.E.D.

Consular Dept.

B.R.D.

S.E.A.D.

News Dept.

Klapin Anok

c.o.

Hong Kong Dept.

Saving to..

HONG KONG AND BHC SINGAPORE

[Abbotto@by---------aldakalpakpakan kamp AZANI

M.I.P.T.: Johns ton.

The details which the Chant und Bank have purrebel about the affait and
the. Some two years ago, when the Bank of China in

Singapore were in serious straits,they raised a loan

from the Bank # Negara (Central Bank) in Singapore,

mortgaging their premises. Efforts of the Bank in

Negara to recover the loan failed. They therefore

had to recourse to the Courts and obtained a

"garnishee" order, i.e. an order attaching money

deposited by the Bank of China with other banks in

Singapore. Under the order some seven or eight

banks in Singapore were required to pay substantial

sums into the Sheriff's Office. The Chartered Bank, He landing bank in
Singafun

fearing that news of large

payments by numbers of

banks in Singapore might lead to a general run on the

banks by small depositors, Le Singepera indicating that

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