they had enough funds in their Bank of China account

to meet the whole sum involved (Seven million

by arraing amat

Singapore dollars), and they secondingly paid this

/su

sum into the Sheriff's Office

(where it still remains)

(manager of the

The local Bank

of China Bemaver at first thanked them for their

load

seoperation 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

"imperialist" plot.

2. The Chartered Bank maintained that they had no

alternative but to obey, the "garnishee" order.

But they recognised that the benefit of

Liimid sight

that it was perhaps unwise for them to take the

lead in the way they did They have so far

derived some consolation from

+

Las

Bank of China in Singapore we

the fact that the

yot not attempt to

push things there to the limit. This they could

Gave some by presenting the Chartered Bank with a

cheque in respect of the sung which the Chartered

Bank has already paid into the Sheriff's Office.

n

The Chartered Bank would have to refuse payment

of the cheque, and would at the very least

exposed themselves to further oriticism from the

Chine

Bank/for not according overdraft facilities.

0327 17 E.W.& S.,Ltd. 164m 3/67.

24 Ang.

7

L

NOTHING TO BE WRITTEN IN THIS MARGIN

CIPHER/CAT A

IDENTIAL

PRIORITY FOREIGN OFFICE 199

TELEGRAM NUMBER 806

CONFIDENTIAL.

ADDI

700

TO PEKING NG

AUGUST 1968 (F) RECEIVED IN

ISED TO PEKING TELEGRAM NUMBER 806 OF 29 AUGUST REPEATED FOR INFORMATION
TO HONG KONG AND BHC SINGAPORE.

YOUR TELEGRAM NO. 786 : JOHNSTON.

¡ARCIVES No.31

- 3 SEP 1968

THE CHARTERED BANK THINK THAT THE ARREST OF JOHNSTON MIGHT CONCEIVABLY
BE CONNECTED WITH SOME TROUBLE THEY HAVE RECENTLY HAD IN SINGAPORE
INVOLVING THE BANK OF CHINA, DETAILS OF THE AFFAIR ARE IN MY IMMEDIATELY
FOLLOWING TELEGRAM.

2. IF THERE IS INDEED A LINK AND THE CHINESE ARE IN EFFECT HOLDING
JOHNSTON FOR RANSOM, THEY ARE UNLIKELY TO ADMIT THIS TO YOU OFFICIALLY
AND IT CLEARLY WOULD BE UNDESIRABLE FOR YOU TO SAY ANYTHING TO THEM
WHICH MIGHT SEEM TO IMPLY A CONNEXION. ANY INDICATION OF CHINESE
INTENTIONS IS MORE LIKELY TO COME THROUGH THE BANK OF CHINA. YOU MIGHT
HOWEVER, WHEN NEXT YOU HAVE AN OPPORTUNITY TO DISCUSS THE MATTER WITH
THE CHINESE, ASK WHETHER THE REASONS FOR WHICH JOHNSTON WAS ARRESTED
RELATE TO HIM PERSONALLY

OR TO THE BANK,

3. THE CHARTERED BANK ARE NOT AT ALL KEEN ABOUT PUBLICITY, WHICH THEY
ARGUE MIGHT BE HARMFUL TO JOHNSTON. (THEIR RELUCTANCE ABOUT PUBLICITY IS
SHARED BY THE HONG KONG AND SHANGHAI BANK). WE HAVE EXPLAINED THAT IF WE
ARE NOT TO BE CRITICISED FOR WITHHOLDING DETAILS OF THE TRUE STATE OF
AFFAIRS IN CHINA FROM THE BUSINESS COMMUNITY HERE WE SHALL HAVE TO MAKE
A STATEMENT. WE COULD JUSTIFY DELAY OF UP TO SAY 3 SEPTEMBER TO GIVE AN
OPPORTUNITY FOR THE CHINESE TO PROVIDE YOU WITH DETAILS1 BUT A STATEMENT
COULD NOT BE DELAYED MUCH BEYOND THAT. THE CHARTERED BANK ACCEPT THIS
AND WILL PROBABLY ISSUE A PARALLEL STATEMENT.

THE CHARTERED BANK HAVE INFORMED JOHNSTON'S FAMILY OF HIS ARREST ON THE
LINES OF YOUR TELEGRAM NO. 788.

CROSEC

DEPARTMENTAL DISTRIBUTLUN

F.E.D.

CONSULAR DEPT.

E.R.D.

8.E,A,D.

NE.../3 DEPT.

01

CONFIDENTIAL

Copy Sent to Ram. 9 Bola.

5

Registry No.

DEPARTMENT

Faoler

SECURITY CLASSIFICATION PRIORITY MARKINGS

Top Spcret

Confidential Raptricted Upalkalled

Flash

lechediate "Priority Routine

(Date).

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

reach addressee(s).

ALLILJO qua|||-|

29/4/58

CYPHER

161)

23302

[A]

X

NOTHING TO BE WRITTEN IN THIS MARGIN

7/

16452

24/18168

PRIVACY MARKING

In Confidence

En Clair. Code

Cypher

Draft Telegram to:-

Peking

No.

(Date)

And to:-

[Secu

Security classification"

--- CONFIDENTIAL

-if any ation]

[ Privacy

Privacy marking -if any

[Codeword-if any]

Addressed to

telegram No...

806

And to

998

1

POKING

(date)

--- L

806

repeated for information to

HONG KONG AND FHC SINGAPORE

SASALARI SELAMAT

Repeat to Hong

Kong

BHC Singapore

5.17

Saving to:-

Distribution Departmental F.E.D.

Consular Dept. E.R.D.

S.E.A.D. News Dept.

for.

Dept.

Saving to

29 lue

Your telegram No. 786 27 August /:

Johnston.

The Chartered Bank think that the arrest of

avigli

Johnston may conceivably be connected with some

trouble they have recently had in Singapore involving

the Bank of China. Details of the affair are in my

immediately following telegram.

indust

2. If there is a link and the Chinese are in

effect holding Johnston for ransom, they are unlikely

to admit this to you officially; and it clearly would

be undesirable for you to say anything to them which

might seem to imply a connection. Any indication of

Chinese intentions is more likely to come through the

Bank of China.

You might however, when next you

have an opportunity to discuss the matter with the

Chinese, ask whether the reasons for which Johnston

was arrested relate to him personally or to the Bank.

The Chartered Bank are not at all keen about

/publicity

3.

I

publicity, which they argue might be harmful to

Johnston. (Their reluctance about publicity is

shared by the Hong Kong Shanghai Bank). We have

explained that if we are not to be criticised for

withholding details of the true state of affairs in

China from the business community here we shall

have to make a statement We could justify delay

of up to say 3 September to give an opportunity for

the Chinese to provide you with details;

statement could not be delayed much beyond that.

The Chartered Bank accept this and will probably

issue a parallel statement.

4.

but a

The Chartered Bank have informed Johnston's of him soment

family on the lines of your telegram No. 780.

032717 E.W.& S.,Ltd. 164m 1/67.

Hans

128 Aug.

NOTHING TO BE WRITTEN IN THIS MARGIN

E

[

CYPHER/CAT-A-

ROUTINE H.C. SINGAPORE

TELEGRAM NUMBER 878

IDENTIAL.

CONFIDENTIAL

100

{ RECEIVED !

ARCHIVES

1968

TO COMMONWEALTH OFFICE

31 AUGUST 1968

ADDRESSED TO CO TEL NO 878 OF 31 AUGUST REPEATED FOR INFORMATION TO
PEKING AND HONG KONG

YOUR TEL TO PEKING NO 897: JOHNSTON

ATTWOOD, LOCAL MANAGER CHARTERED BANK, CALLED ON ME ON 19 AUGUST AND
TOLD ME MUCH THE SAME STORY AS IS CONTAINED IN YOUR TEL UNDER REFERENCE,
(BUT SEE BELOW). HE SAID THAT HIS REASON FOR APPROACHING ME WAS TO ASK
MY PERSONAL OPINION, IN VIEW OF MY PAST ASSOCIATION WITH CHINESE
AFFAIRS, WHETHER THE CHINESE AUTHORITIES WERE LIKELY TO TAKE ACTION
AGAINST THE REMAINING CHARTERED BANK STAFF 1 CHINA. HE SAID THAT APART
FROM SEEKING MY PERSONAL VIEW HE WAS NOT ASKING ME TO TAKE ANY ACTION
AND I THEREFORE DID HOT REPORT THE INTERVIEW.

2. I TOLD HIM THAT I WAS 110 LONGER SUFFICIENTLY IN TOUCH TO EXPRESS ACY
DEFINITE OPINION BUT THAT ALTHOUGH THERE HAD RECENTLY BEEN A RELAXATION
IN PEKING'S ATTITUDE TOWARDS OUR OWN STAFF I WOULD NOT BY ANY MEANS RULE
CUT THE POSSIBILITY OF ACTION AGAINST THE CHARTERED BANK OFFICIALS IN
CHINA.

3. THE ONE POINT WHERE HIS STORY DIFFERED FROM THAT CONTAINED IN YOUR
TEL UNDER REFERENCE IS THAT ACCORDING TO HIM THE CHART- ERED BANK DID
NOT REPEAT NOT TAKE THE INITIATIVE IN MAKING THE OFFER TO MEET THE WHOLE
SUM INVOLVED OUT OF THE FUNDS THEY HELD. HE SAYS THAT THE SINGAPORE
MINISTRY OF FINANCE SUMMONED ALL THE BANKERS INVOLVED AND REQUIRED THEM
TO STATE HOW MUCH BANK OF CHINA MONEY THEY HAD ON DEPOSIT. ALL BUT

/THE

CONFIDENTIAL

+

+

P

CONFIDENTI AL

2.

-

THE CHARTERED BANK HAD RELATIVELY STALL AMOUNTS, WHEREAS

THE CHARTERED BANK HELD SOMETHING OVER 8 MILLION SINGAPORE DOLLARS. IT
WAS, ACCORDING TO HIM, THE MINISTRY OF FINANCE WHO DECIDED THAT RATHER
THAN SPREAD THE LOAD THE WHOLE SUM INVOLVED SHOULD BE TAKEN FROM THE
CHARTERED BANK ACCOUNT.

THE BANK TOOK LEGAL ADVICE AT THE TIME AND WERE THE SATISFIED, AS THEY
ARE NOW, THAT THEY HAD NO OPTION BUT TO COMPLY WITH THE MINISTRY OF
FINANCES ORDERS.

CO PASS PEKING

SIR A. DE LA MARE

[REPEATED AS REQUESTED]

DEPARTYENTAL DISTRIBUTION

F.O. F.E.D.

CONSULAR DEPT.

E.R.D.

S.E.A.D.

NEWS DEPT.

0.0. HONG KONG DEPT.

+

CONFIDENTIAL

CONFIDENTIAL

Cypher/Cat A

PRIORITY PEKING TO FOREIGN OFFICE

Telno. 786 27 August, 1968

TOP COPY

99

98

CONFIDENTIAL

Fefle

Addressed to Foreign Office telegram No. 786 of 27 August. Repeated for
information to Hong Kong.

Your telegram No. 800: Johnston.

I understand the reluctance to initiate publicity while we are still
making our first enquiries about Johnston in Peking and London, On the
other hand I think it

important that publicity when it comes should be initiated by ourselves
or Chartered Bank and in the form of a prepared statement. Nor do I
think we should delay long. Unless there is an encouraging answer to our
enquiries within the next few days I suggest that we or The Chartered
Bank should make a statement to the Press. This would also be a good
occasion to have publicity on other British residents in Shanghai,
stressing the virtual detention of a community including sick women and
children. I hope you will be able to obtain the bank's agreement on this
course. Failing rapid progress over Johnston, publicity would be likely
to do him and the rest of the community more good than harm.

Foreign Office pass Hong Kong.

Mr. Cradock.

[Repeated as requested]

DEPARTMENTAL DISTRIBUTION

F.O. F.E.D.

Consular Department. E.R.D.

Research Department.

News Department.

C.0. H.K. Department.

CONFIDENTIAL

Xxxxx

CYPHER/CAT A

IMMEDIATE FOREIGN OFFICE.

TELEGRAM NUMBER 809.

CONFIDENTIAL.

CONFIDENTIAL

TO PEKING,

26 AUGUST 1968.

(FED)

(98)

PIIRIVED IN ARCHIVES No.31

AUG 1968

E74

ADDRESSED TO PEKING TELEGRAM NUMBER 809 OF 26 AUGUST REPEATED

FOR INFORMATION TO HONG KONG.

Ko/ JOHNSTON. D.J. F?

awaiting arrival of

YOUR TELEGRAMS 778 AND 7881 JOHNSTON.

L-

WE DISCUSSED THIS WITH REPRESENTATIVES OF THE CHARTERED BANK THIS
MORNING. THE BANK ARE TAKING ACTION ON YOUR SECOND TELEGRAM UNDER

REFERENCE.

2. THE BANK WILL SEEK INFORMATION AND ASSISTANCE FROM BANK OF CHINA AND
CHINESE COMMERCIAL OFFICE HERE. WE SHALL AWAIT THE OUTCOME OF YOUR
APPROACH TO THE CONSULAR DEPT AND MAY THEN

SUMMON SHEN P'ING.

3. MEANWHILE WE DO NOT INTEND TO INITIATE NO PUBLICITY BUT SHALL HAVE TO
CONFIRM THE STORY IF IT BREAKS ELSEWHERE,

4. WE SHALL BE INFORMING SIMON CARVES AND 1.C.1. IN CONFIDENCE

IN CONNEXION WITH THEIR PROPOSED VISIT TO CHINA.

BOSEA.

DEPARTMENTAL DISTRIBUTION

F.0.

F.E.D.

CONSULAR DEPT.

E.R.D.

RESEARCH DEPT.

NEWS DEPT.

C.0.

H.K.D.

CONFIDENTIAL

+

20788(0.97

COMO

600.0%

хх

NOTHING TO BE WRITTEN IN THIS MARGIN.

Registry No.

Top Secret.

Secret.

Confidential,

Restricted. Open.

Draft.

FE514

Telegram to:-

Sekly

No.

(Date)

And to:

800

26.7.8...

ХХ

EMERGENCY IMMEDIATE

PRIORITY

ROUTINE

with

without

priority

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

reach addressee(s)..

(Date)

----------------

Despatched

DEFERRED

[Sec

Security classification -if any

ion].

---------

268

1216

CONFIDENTIAL.

meblank------¶-a-dub--------

----------

Peking

-LLLIA-----------

(date)..........

26/6.

Hory Kong

Johnston.

Repeat to

Hay Yong

En Clair.

Code

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Distribution:

Departmental

FED

Consular Dept

E.RD. News Rept

H.K.D

[Codeword if any]

Addressed to............

telegram No....... Soo

--------------------------.

repeated for information to

-LI-LI-

ITIL..

Your telgrams 778 and 780:

We disumed the with Bank repercutiatives of the Chantine Bank

& This moming the Bank

are

taking action

on your

recand telegram under reference.

3. The Bank will such information and assistance

the outcome of youust be

awart good of your

Commercial

from Bank of

bhina

And

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offere here.

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approach to the miiting work

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NOTHING TO BE WRITTEN IN THIS MARGIN.

:

Reference

97

}

AR

29 AUG

FCS14

was

Kr. Derson

1

31

2774

Aus

Mr Musim Sul 26 Arm

Refusal of the People's Insurance Company of China to insure the

risks of atrike, riot and civil commotion.

I have heard from commercial sources in this country that the Chinese
Insurance Company has announced that in future it would not insure
against strike, riot and civil commotion. I understand that similar
reports have been received from other countries including Japan, France
and West Germany.

2. Recently however I received from Dubai a copy of a letter from the
Bank of China to the British Bank of the Middle East giving instructions
to the latter Bank to inform their principals immediately of the change
of policy by the Chinese Insurance Company. I attach a copy of the
letter, should be grateful if it were not published since publication
could damage considerably the British Bank of the Middle East.

Shevant

( J. Sharland) Far Eastern Department

23 August, 1968

|

I

:

:

с

Research Department

Mrs. Newbury (DIS MOD)

I.R.D.

P.U.S.D.

E.R.D.

C.R.E.D. (Board of Trade, Mr. Rogora)

pa

£5/4)

RESTRICTED

FOREIGN OFFICE, S.#.1.

19 August, 1968.

96

95

Thank you for your letter of 11 August about the Bank of China and the
enclosed copy of their notification that the People's Insurance Company
of China has now decided not to insure against strikes, riots and civil
commotion.

2.

I had heard reports of this decision by the Chinese Insurance Company
from British businessmen dealing with China but had not previously seen
a copy of an authentic document. I am most grateful to you therefors for
taking the trouble to send me a copy of this letter.

3. The Chinese insurers show every indication of being absolutely
serious about refusing to insure against these particular risks. This is
causing difficulties for people who regularly trɛde with China in that
they urė obliged to place their insurance with the Chinese company as
far as possible and must now therefore seek separate cover from other
companies for these risks. The expense involved will not be great but
the inconvenience clearly will. I imve as yet received no reports of
anyone cancelling or refusing to undertake business with the Chinese as
a result of this change in commercial policy for blatant political
reasons, but should be most grateful if you would let me know should you
hear of any such action being taken,

E. J. Sharland) Far Eastern Department

T. J. Clark, *sq.,

H.B.M. Political Agency,

Trucial States,

DUBAI.

RESTRICTED

fa

pa, 26/8.

I

UNCLASSIFIED

Dear Department,

Enter

14/95

H.B.M. POLINICAL AGENCY

Bank of China

TRUCIAL STATES

DUBAI

11 August, 1968

· RECEIVED IN ***IVES N" 31

1. AUG 1968

FC5/4

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