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are likely to effect, directly and practically, existing British economic interests in China and to necessitate the closest liaison not only in Chungking but also in any other part of China containing British interests in which it may operato. The staff requirements of the E.L.0. will also be largely dependent on the activities of this branch.
f)
The above outline of the functions of the various branches of G 5 is based on relatively brief conversations with the officers concerned. I did not think it advisable to take notes so I am quoting from memory. therefore, be some inaccuracies and as G 5 expands there may
There may, be some ro-allocation of duties between the various branches. So far as I en ascertain the personnel of G 5 is likely to be increased fourfold. I would like here to record that I was shown every courtesy and given the maximum holp by all the G 5 officers I met.
4.
a)
Conclusion.
G 5 is in the process of expansion and is being split up into new branches. Consequently it is difficult to get a precise statement of their requirements at present since in some cases they are not sure just what they want. In particular the tendency is to ask generally for everything we can get rather than for specific items of information.
b)
Initially I feel that our Economic Liaison Officer will be used by G 5 largely as someone to refer to on any matter which requires contact with the British, irrespective of whether or not the subject comes within ths scope of his dutios. I consider this all to the good and that it will pay the Liaison Officer to do odd chores for G 5 or to arrange for them to bo done by the appropriate British organisation. Good personal relations between the staff of G 5 and the E.L.0. can be fostered in this manner and I believe that the ultimate value to us of the E.L.0. will depend very largely on the personal influence he can exercise.
c) At present it is clear that G 5 expects us to give them the maximum information about British economic interests in China in particular and about British knowledge of China's resources in general. What advantage we will gain by complying is not so clear chiefly because the plans of the Military Government Branch are not yet available. however, that we have nothing to lose and everything to gain
I consider, by giving G 5 what they require.
a) s I sec it, the E.L.0. should concentrate on the Procurement and Military Government branchos. course obtain and supply information as required to all
He will of branches and should keep in touch with the dealings of Professor Needham and Messrs. Asquith and Watterson with G 5. But these experts must obviously remain the main channels for liaison on a technical plane with the Requirements and Assignments and Production branches. Procurement and Military Government branches will however deal primarily with matters likely to involve existing British economic interests in China and I conceive the protection of those interests to be one of the main duties of the E.L.0. This may not be easy, for General Olmsted told me frankly that there might occasionally be difficulties arising out of divergent national policies. He believed
however/
The
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