TNAG-0028-FCO40-64-Relations-with-China-1968 — Page 141

272

CONFIDENTIAL

Cypher/Cat A

IMMEDIATE PEKING TO FOREIGN OFFICE

Telno 3

25 January 1968

CONFIDENTIAL

Addressed to Foreign Office telegram No. 73 of 25 January. Repeated for information to Hong Kong.

My immediately preceding telegram.

This was most satisfactory interview that we have had for some time. The following points are worthy of note:

(a) The discussion was long (90 minutes) detailed and without dramatics;

(b) Hong Kong was not (repeat not) mentioned at any point despite several obvious openings, for example on the question of Grey. For the first time since last June the Chinese have heen prepared to discuss question of staff moves in a purely bilateral context. (Even my interview with Hsueh on 27 November included a considerable blast on Hong Kong). This is a notable change of tack.

(c) Kao stressed throughout the Chinese wish to restore normal movement for the staff. His argument was that reason why Chinese have not given us more visas is our alleged refusal to match visa concessions made by them, (not as on earlier occasions, events in Hong Kong). He made no secret of Chinese wish to move their own staff in and out of U.k.

(a) He also referred more than once to Sino-British relations.

(e) We had for the first time Chinese terms for restoration of staff movements spelt out for us. If Chinese mean what they say terms are moderate and require no concessions at all in Hong Kong. Moreover Kao's final remark about reciprocal concessions from the Chinese side is remarkably frank from a Chinese official. It is most unlikely he would make it without being sure of his ground. It is about as much as we can hope to get in the way of an assurance that we shall not be making unilateral concessions.

See my immediately following telegram.

Foreign Office please pass Hong Kong 39.

Sir D. Hopson

[Repeated as requested]

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