TNAG-0029-FCO40-65-Relations-with-China-1968 — Page 41

CONFIDENTIAL

7.

Following strong representations from Sir D. Hopson,

we finally accepted that there was no advantage in holding

up possible progress in restoring normal working conditions

for the Mission in tho belief that this would help Mr. Grey.

Ministers were on the point of considering a recommendation

that all restrictions on entry and exit should be unilaterally

raised when Gir D. Hopson was summoned on 8 March by the

Chinese Vice-Minister of Foreign Affairs, Lo Kuel-po, to receive

a statement by the Chinese Government. This was to the effect

that the Hong Kong situation was indeed the crux of Sino-British

relations, that the Eritish Government must reply to the various

demands put forward by the Chinese in connection with Hong Kong

and that only thereafter would it be possible to discues

"secondary matters" e.g. the restoration of normal movement for

our diplomatic mission and the settlement of the case of

Mr. Grey.

Far Eastern Departacnt 21 March, 1968.

CONFIDENTIAL