TNAG-0028-FCO40-64-Relations-with-China-1968 — Page 115

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will no longer pay dividends, and possibly of a realization

that we are not going to be pushed into concessions in Hong

Kong by Chinese obduracy over our Mission in Peking.

6.

Of course the Chinose "Sermo" (if this is what they are)

are still highly unsatisfactory. Howovor, I agree with Sir Donald Hopson (Peking telegram No. 73) that the Chinese have

gone as near as we are likely to set to an assurance that con-

cessions by us will not be in vain. They are in fact asking

that we should return to the status quo of last August and

disregard the sacking of our Mission in Peking. (At the time

of the sacking British bankers in Shanghai wero already having

difficulty over exit visas and Kr. Grey was already undor house

arrest.)

7. Sir Donald Hopson (Peking telegram No. 74) has said that

if we meet the Chinese "domands" they will reciprocate by

granting all the outstanding exit and entry visas for menberg

of our Mission. Although we cannot be certain, I agree that

they are likely to do so. We have no assurance, however, that

if the situation again detoriorates in Hong Kong the Chinese

will not again use our Mission as hostages. It is an unavoidable

risk which we must take as long as we maintain a Mission in

Peking.

(This is an argument for getting as many of our

present mission out of Peking while the present Chinese mood

moderation

of comparative eoncilation lasta.)

8. But the point on which the Chinese terms are most

unsatisfactory is that they specifically exclude Mr. Grey, and do not necessarily include British bankers in Shanghai.

(The

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