SECRET
Visit of the Rt. Hon. Lester Pearson,
Prine Minister of Canada.
21-27 November, 1967.
Briof No. 11.
Hong Kong
Canadian Wheat Sales to China
2DA
We learned in July that the Chinese were seeking talks with the
Canadians about wheat purchases to cover the next six months period.
The talks more to have been held in August, but were postponed
indefinitely by the Chinese. We have recently been told, in confidence,
that the deferred talks are soon to take place in Peking.
At the time that we first heard about the talks Hong Kong was
very short of water; the Chinese had failed to respond to requests for
additional supplies of water from China and were lending considerable
propaganda aid to the local Cornists in Hong Kong in thoir campaign of
confrontation with the authorities.
Wo accordingly asked our Mission in Ottawa in August to sound out
the Canadians for their likely reaction to a suggestion that they might
mention to tho Chinese during the course of their wheat talks the subject
of water supplies for Hong Kong. Wo made it clear that we were
suggesting no more than that the Chinese might take notice of a Canadian
hint or passing reference to the matter.
Our Mission in Ottawa nade the necessary approach at official
lovol and were advised in confidence that it would be advisable to nako
an approach to the Canadians at Ministerial level.
In the event, water supplies from China to Hong Kong were resumed
on 1st October in accordance with the standing Agreement which has been
in force since 1964. We accordingly told our Mission in Ottawa at
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