CONFIDENTIAL
2
of the Cultural Revolution in China which has
brought with it an increase in the influence of
more realistic and pragmatic elements in the
Chinese leadership.
An
3. We shall continue to work for the restoration
of normal working relations between Hong Kong and
China. An agreement was reached with the local
Chinese border authorities at the end of November
under which two Hong Kong police constables who had
strayed into Chinese territory were returned in
exchange for the deportation of five Chinese nationals
held in Hong Kong. One of the border bridges which
had been closed after the abduction of Senior
Inspector Knight on 14 October was re-opened.
ex gratia payment was made to local Chinese farmers
to offset losses caused by the closure of the bridge.
Payments were also made for the disturbance of graves
by British troops and some old barbed wire on the
British side was removed. The Chinese have claimed
the agreement as a total "victory" for them, but in
fact it is generally regarded in Hong Kong and
elsewhere as an indication that despite "confronta-
tion" the Chinese are prepared to negotiate with the
It is Hong Kong Government on practical matters.
significant that the Chinese took the initiative
in proposing negotiations.
(Inspector Knight
/escaped
CONFIDENTIAL
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