(date)
22 November 1967-
repeated for information to... HONG KONG........
Repeat to:- for info.
Hong Kong 2385
Saving to:-
Distribution:-
Departmental
Far Eastern
Hong Kong Dep.
Copies to:-
----
Saving to
Hong Kong and Shanghai Bank
Bank have asked our advice about moves they
wish to make to close their Branch in Shanghai. They propose to ask us
to forward through diplomatic
channels a letter to Minister of Finance saying
they intend to close and seeking cooperation in this
and issue of exit visas for staff. All staff would
Withrown
be ented immediately with the exception of
Lachlan who would handle closure. Copies of letter
would be sent to Chinese Office here and to Self.
2. One of their trusted Chinese advisers edvines is
strongly against this action for the following
reasons:
(a) Self's detention is political and attempt
Branch
to close Shanghai Boule would be seen as
first move towards breaking diplomatic
ملتا ہے۔
Densm
भ्र
relations;
(b)
D4.32855 BA (4200)
NOTHING TO BE WRITTEN IN THIS MARGIN
(b) China uses sterling as ✯ reserve
currency and fears blocking of
sterling account for political
reasons.
Hostages are therefore
important and China is unlikely to
allow all Bank officials to leave.
(c) Although Bank staff have not so far
been molested, this situation might
change if closure were an:.ounced;
(a) In present situation in China, no-one
will make a decision on application
to close.
3. We see force in arguments at (b) and (a)
but less in (a) and (c). Grateful to have your
views on all the above, and any additional
points you think should be considered, by 25
November.
Departmental
dist.
In
22/4
M. Marland
With the Compliments of the
Political Adviser
Hang Trong
Pse-speak
し
Entu
E
BCR 1/1167/55 VI
CONFIDENTIAL
4
? Nov.
letter
November 15th, 1967.
१५.
JFD IN
No 31
1967
Thank you for your
Ostober 7th about the
Hongkong Bank in Shanghai. I am afraid that I did not get the top copy
of the letter nor the chit; I expect they went to London by mistake.
2.
I have passed on your message to Jake Saunders.
I now learn from the Bank that they wish to take active steps as soon as
possible to close their branch in Shanghai. Their present intention,
subject to the views of Far Eastern Department, is to inform the Chinese
Charge d'Affaires' Office in London of what they have in mind. I have
pointed out that there are riske that this line of action would in fact
encourage the Chinese to think of new obstacles which they could place
in the way of the departure of their staff. But, in the long run, if it
is really their settled plan to close their Shanghai office, they will
obviously have to let the Chinese know of their plan through one channel
or another. Perhaps the present is as good a moment for broaching the
idea as any.
3.
I am sending a copy of this letter to James Murray in Far Eastern
Department.
Now see 749
T. Peters, Esq., C.K.G.,
Office or R.M. Charge d'Affaires, PNKING.
(T.A.K. Kliott)
}
-
CONFIDENTIAL
-
40
Saundan)
Mr De
17 Nor
+
Mr Shank 29.
Shoul
Way Scar: Anthony,
Office of the British
Chargé d'AffaireLVED IN
¡ARCHIVES No 3'
PEKING
7 Roseber, 1967.-
Norimber
21 NOV 1967 · 1
FC574
Our Danish colleague was able to give self of the Hong Kong Bank in
Shanghai a manuscript letter of mine giving him the information in the
enclosures to your letter SCR 1/1167/55 VI of 4 October to Donald
Hopson. The colleague was able to have a chat with Self and the.
other two members of the Bank there and, if nothing else, I think this
chance of a chat with someone outside the now tiny Shanghai circle of
foreigners was a great help to them all.
2.
Our Danish colleague brought back with him the enclosed chit which is
obviously for Jake Saunders at the Bank and will, I hope, make sense to
him.
3. Since it is absolutely assential to keep this channel of
communication confidential I should be grateful if you would remind SFF
that he should not refer to Self's message of 30 October in any open
letters or telegrams, either back to Shanghai or to London. Perhaps you
would be kind enough to ask him to destroy the message when he has
finished with it.
We were very lucky to find someone who was prepared to carry messages
and we will always do what we can. However it is very difficult to do
this and opportunities do not often arise.
I am sending a copy of this letter without enclosure to James Kurray in
Far Easterni Department and have noted that he would only want us to use
the Poles for messages as a last resort.
L
T. A. K. Elliott, Esq.,
HONG YONG.
しし
PETERS)
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(Note. The
have b
before
orig. was sent have mirale - so it was passed
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CONFIDENTIAL
L
25.10.67.
Thank you for your letter of 19th October.
We would much prefer not to commit our opinions to paper and suggest
that you first make a direct approach to the Head Office of the Bank of
China and try to get their reactions. use Sterling.
They still
There are no banking problems involved and our half-yearly reciprocity
figures business with correspondents) should give you all the paakizmax
information you might need,
We are not at all happy about the possible effects on our personal
prospects and it is most unfortunate that there are three officers here.
However, we are all agreed that the time to face realities is
considerably overdue.
30.10.67.
Further to my chit of 25th, it seems that one or two comments are
indicated after all.
As you know, it was for several years until the mid fifties
I have the our firm policy to close as soon as possible. impression that
when it was decided to continue, the persons concerned on both sides had
pretty hazy ideas about our future role. Anyway hostages were needed
until the settlement of the foreign currency liabilities question and
the idea has evidently not been eliminated. My point is that in the
event, we have never been of any other value to China unless you count a
lac or two of Sterling at inter-branch rates and the collection of bills
in London. Perhaps they thought our connections and influence might be
useful with their own overseas banking operations. Our present overheads
are about JMP 150,000 per annum but it costs London Office quite a bit
to collect our bills under other banks' credits.
I am almost sure that we would not be permitted to continue in business
without British staff. If we could get the same sort of treatment as Air
France and P.I.A., it might be worth holding on for a while in the hope
of better days but this probably depends mostly on Hong Kong politics.
It is quite likely that they would be glad to see us close but this does
not mean that it will be easy. Our approach must be put in such a way
that it cannot be ignored. If you decide to take the plunge, we hope
that GOW will be able to rally some support. I am grateful that you have
given my personal position so much attention but I think that this
should no longer be taken into con- sideration.
* GOW is in my opinion the crux of the matter and means the Treasury/B
of E. What hopes ?
Please destroy.
L
+
CONFIRMANTIAL
46
Office of the British
Chargé d'Affaire,
FC5/41
Peking.
40
TheGN
31 October, 1967.
You will remember writing to a on October 4, your reference 8CR
1/1167/55 VI (with various enclosures).
I am writing by to-day's bag to tell you that I was able to send a
message to Derrick Self by one of our Danish
I shall not know colleagues who went to Shanghai on Sunday. whether he
was able to give Belf the message for a few days, but I thought that I
had better let you know that he may have received the Bank's proposels
and may therefore be sending then
I will write again es 800% seme open messages about then.
so we have more news.
I am sending a copy of this letter to James Murray in the Foreign
Office.
7. A. I. Milliett, Esq•,
Hong Loly
(T. Peters)
очен
CONFIDE
TIAL
CYPHER/CAT.A
FC574.
CONFIDENTIAL
FOREN OFFICE TO PEKING
TELNO. 952
3 NOVEMBER 1967
(F)
CONFIDENTIAL.
ADDRESSED TO PEKING TELEGRAM NUMBER 952 OF 3 NOVEMBER REPEATED FOR
INFORMATION TO HONG KONG.
PETER'S LETTER TO ELLIOTT OF 19 OCTOBER (JUST RECEIVED): MESSAGES TO
SELF.
WE WOULD MUCH PREFER NOT (REPEAT NOT) TO USE THE POLES TO SEND A MESSAGE
TO SELF BUT WOULD AGREE AS A LAST RESORT.
43
SOSFA
FILES
F.0.
F.E.D.
SECURITY DEPT.
SSSSS
!
CONFIDENTI AL
Re
45
NOTHING TO BE WRITTEN IN THIS MARGIN
*
Date and time (G.M.T.), toleram should reach addressed())
Registry No.
Top Secret
Confidential
Resisted
FC574.
__EMERGENCY
IMMEDIA: MIORITY ROUTINE
with
DEFERRED
priority
(Date)
Despatche
Draft.
Telegram
No!
Peking 952 (Date)_3/
And to :-
[S
[Security classification] -if any
[Codeword-if any],
Address to..
telegram No.
Conf
3/11
1938
Peking 952 3/11
...(date)...
repeated for information to......
Họng họng.
LI
45
Peters' letter to Elliste of 19 October
Repeal to :-
#148
(just received):
m
to SELF
messages
We would much
prefer not (repeat Noi)
to
use
message
The Poles to
Fend
a
to SELF bur would
Be-Clair, Cade Cypher
agree
as
a
last resort.
Distribution :-
Fila
FE) Securityy
Copies to:-
1605
3/11/67
(oz) Wh. 17714-33-300 7/62 $15.
FC5/4
I'm
With the compliments of
THE OFFICE OF
THE BRITISH CHARGÉ D'AFFAIRES
casted
Mr Sharland or.
la
PEKING
RECEIVED IN
ARCHIVES No.31
31 OCT 1967
FC54
+
.
THE HONGKONG AND SHANGHAI BANKING CORPORATION
:two Huya
VLER MANG TUEN ROAD
A. A DOT 101
SHANGHAI, CHINA
AYROONG:
aist Jetcher, 1967.
!
I am enclosing for your information. a
*ranslation of a letter which we sent on 14th October
to the local Bureau of Industry and Mŝommerce, I felt
that traze was perhaps a remote posqfbility that an -ågth at least get
over one of the formalities avon
theto ro exit vians appear to be ferthrowing.
-
They
-ight even be glad to have a younger and moze vigorous
j malèle party' i
copies more sent
sent to
to the Cadena and to the
latter which
Zank of China but it is presumably
oals with the matter anyway.
Trust that you are all well and bearing up
that the news from home is good.
#ith best regards,
Yours sing
K. Self.
Pitney Zaşe,
Brice of the British Charge d'FT=ize:
FEKINT
THE HONGKONG AND SHANGHAI BANKING CORPORATION
SHANGHAI, CHINA
The Bureau of Industry à donneres, Shanghai.
Dear Sirs,
dated 1th May 1967 ta shiat
1907
of this
Letter approval for D.K.K. Bels
kra þ,3, Lachim.
To believe
La
by the
1967.
may have been
enquirion and
As it is
shall be most grateful toer consideration and worship.
Vo would mention
the Bank.
x'n entry visa tire for medias) kith, 14 in hoped the
best to
Loving
་་་་
PRECE NOHY
$100, 1967
11
.3t
1F25/4
CONFIDENTIAL
Office of the British Charge
d'Affaires,
Peking.
19 October, 1967.
43
Donald Hopson has asked me to reply to your letter SCR 1/1167/ 55 VI of
4 October about the Hong Kong Bank's Shanghai Branch. It is
unfortunately true that we have no confidential means of communicating
with Self in Shanghai. We speak to him on average about twice a week by
telephome and when we last did so a few days ago he reported that there
was no change in his situation and that of his stafft.
2.
We shall try hard to find a suitable safe hand to carry a letter to
Self. Some of our solleagues sometimes ge to Shanghai but the Chinese
have been quite mean about travel for all of us in recent months. In the
past the Indian Embassy used to send people fairly regularly to Shanghai
to look at their property there or to deal with problems concerning the
Indian community. They are trying to go again but have not yet been
given permission to de se.
3. The Manager of Pakistan International Airlines in Shanghai usually
calls on us when he is in Paking and we also know the Shanghai Manager
of Air France. I do not know if the Bark would agree to us asking them
if they would carry a letter about thesa matters to Self.
4. There are also the Poles who have a Consulate General in Shanghai and
who are sometimes able to send couriers to their Consulate General there
or have visits from them. I should be grateful if James Murray, to whom
I am copying this latter, would let us know Is the Office would agres to
us approaching the Poles to take a letter for us if all else fails. We
do not know if the Foles would agree to do so but they have always been
very helpful in the past.
7. A. K. mliott, Esq.,
HỒNG KON
(T. Peters)
The Denso
дер
I have Preken & Securely Japa (ir Ogmond) and a gred CONFIDENTIAL
attached draft 1.
PS John Jenson enguins abouw self
receut
my
lith
and all the
letter tomme.
above
Оли
afraid para.
bl.
༢
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is the best we can do. Self Buth in Shanghai are very depressed, and we
cannot ourselves when we talk to them give them much comfort thes
(5/4)
CONFIDENTIAL
FOREIGN OFFICE, S.W.1.
24 October, 1967.
Your telegram No. 3044 about the Hong Kong Bank in Shanghai. You did
indeed inform us that the Bank did not wish to send in replacements and
this has been confirmed by the Bank's main Londen Office.
2.
Eddie Bolland's mentioning the subject of Robertson's entry visa for
Shanghai was in the course of a general survey of Chinese obstructionism
and this must have slipped his mind. I am sure that there is no danger
of the Chinese granting a visa to Robertson unless a new application is
made, and we shall certainly not mention the subject to them again.
K. M. Wilford Esq., C.M.G.,
WASHINGTON.
(J. B. Denson)
MALA
25/6
42
M.F.P
NOTHING TO BE WRITTEN IN This margIN.
Registry No.
FOSTA
Top Secret.
Secret.
Confidential.
Restricted.
Open.
Draft. Letter
EJS
20/10
Personal
K. M. Wilford Esq.,
C...G., Washington.
from: J. B. DENSON
And this mum!
have shipped her
munt
Insert Telephone No. & Ext. when appropriate.
42
Theuse refer to Your telegram No. 3044
about the desire of the Hong Kong Bank
extricate its staff members from Shanghai
without suli
my replacements, You mast the Baits did not wish to send m
indeed inform us of this before you
Mis
have bun
did
left Hong Kong and we juste inlun isen.
the Bank's main London Office D
on the subjeet
2.
Eddie Bolland's mentiaing the subject
of Robertson's entry visa for Shanghai was
in the course of a general survey of
Chinese obstructionism I am sure that
there is no danger of the
Z
ng a visa
to Robertson unless a new application is
made, and we shall certainly not mention
the subject to them again,
r
the st-ju
to
* Jon
экооб
fig we hitta
,
CONFIDENTIAL
I know bulishe mkjent
in
F2574.
the Charlina banko ONFIDENTIAL
inition is that they do not get
in to when this staff when we
sortiumplate as
From: 0.4.0, Hong Kong
PRIORITY CYPHER
ACTION
VED IN AS No.31
.7.1967
Fe514
Kilind
78
D.T.R: 29th August 1967
1850 hra
To: Secretary of State
1321
6
5
D.T.D: 29th August 1967 2100 hrs
Following from Political Adviser.
Chief Manager of H.K. & Shanghai Bank, Hr. Saunders, raised with ne on
28th August question of Bank staff in Shanghai. Present staff situation
is set out in H.K. telegram No. 1159. Mrs. Self's axit permit has since
ex- pired and she has been told that it cannot be extended and that she
must re- apply. She is not at all well and her husband would like bør to
leave.
2.
Bank have now decided that their continued prosence in China. serva no
useful purpose and that they would be quite ready to close their office
and liquidate the business if this could be arranged, and withdraw all
British staff. They would, however, be willing to contine to finance
China trade from Hong Kong and elsewhere. Alternatively and as a last