TNAG-0029-FCO40-65-Relations-with-China-1968 — Page 132

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IMMEDIATE

PEKING

ΤΟ

FOREIGN OFFICE

Telno. 211

18 March 1968

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373

Addressed to Foreign Office telegram No. 211 of 18 March. Repeated for information to Hong Kong.

364)

Hong Kong telegrams Nos. 330 and 331.

T.S. ANNEY

The approach from the Chinese reported in Hong Kong telegram No. 331 is of considerable importance and supports the 349 theory in paragraph 3(0) of my telegram No. 179. I consider it very much in our interests to probe the Chinese intention via this channel and I support the Governor's recommendations of a reply not later than 19 March and generally along the lines of paragraph 5 of his telegram No. 330.

2. We should look again at the recommendations in paragraph 8 49 of my telegram No. 179 in the light of this information.

Diplomatic pressure should be applied as soon as possible, but it would now seem even more important to withhold publication as far as we can for the time being. The contact's references to the economic outlook confirm that the Chinese are vulnerable in this sector and emphasize the importance of our urgently investigating if there are any kinds of economic or financial pressure we might bring to bear. Are there any services hitherto commissioned for the Chinese Government in Hong Kong or London that might be withdrawn or that we could hint might have to be withdrawn if the present situation continued? Can we get across to them by some channel the idea (providing it has sufficient substance) that failure to achieve an early settlement is bound seriously to affect the Chinese economy? I should welcome Hong Kong as well as your comments on this aspect.

3. Incidentally are there any other Chinese Government activities conducted in Hong Kong e.g. of an intelligence nature, which we countenance, but which would give us the opportunity for bringing discreet pressure without great risk of confrontation.

Commonwealth Ofrice pass Immediate Hong Kong 148.

Sir D. Hops on

Repeated as requested]

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