TNAG-0029-FCO40-65-Relations-with-China-1968 — Page 59

CONFIDENTIAL

5.

:

photographs in prohibited areas.

(Unexposed film was taken

from Mrs. Watt when she was searched by the Chinese authorities before she left Shanghat for England last August.)

11. On 27 February, Mr. Cockburn, the General Manager of

Vickers-Zimmer, and Kr. Parry, a legal adviser, went to Peking

to try to settle the question of Mr. Watt and Mr. Deckart and

other problems which have arisen over their contract. Their

departure from China was delayed by the Chinese. They finally

returned on 15 February. Although they made suggestions to

their Chinese client, the Technical Import Corporation, for

the better organisation and running of work on their plant,

the Chinese refused to discuss anything except the charges

against Mr. Watt. They repeatedly demanded that Vickers-

Zimmer accept full responsibility for the actions of Kessrs.

Watt and Deckart and make full apology. Mr. Cockburn refused

to accept any responsibility while agreeing that, if details

of Kr. Watt's activities were made known and it emerged he had

infringed any laws or regulations, the company would make

appropriate apologies. At the final meeting with the Chinese,

Vickers-Zimmer wore accused of accepting the contract purely

in order to danage China and it was suggested that the whole

affair was a deliberate fraud planned by the company.

12. Vickers-Zimmer propose to send a letter to their client

making specific suggestions for putting work on their plant

on a responsible commercial basis and pointing out to the

Chinese that at present it would he difficult, if not impossible,

for them to persuade other engineers to go to China.

COFFIDENT TAL

/13.