Cypher/Cat A
SECRET
COMMONWEALTH OFFICE
22 March 1968
IMMEDIATE HONG KONG
TO
no 365
SECRET
24
392
Addressed to Commonwealth Office telegram No. 365 of 22 March, Repeated for information to Peking.
313) Peking telegram No. 211:
Representations to Chinese.
We cannot think of any services that are available to the Chinese in Hong Kong which we could usefully threaten to withdraw. We considered last year (cf. my telegram No. 1441 of 1967 to you), the possibility of making difficulties about transit visas either But I for C.P.G. employees or for people of other nationalities. think the conclusion must remain that although in particular cases, e.g. those of Japanese travellers who have made offensive remarka about Hong Kong, we might take obstructive action, any general decision to hamper transit to China through Hong Kong would probably work in the long run more to our disadvantage than that of the Chinese. The basic point is that they can always bring effective pressure to bear on the Colony by withholding supplies across the frontier in retaliation.
2.
+
Similarly, we see little prospect of being able to take effective action in the Intelligence field. Although there are undoubtedly a number of Chinese activities of this sort in Hong Kong by which they set store.
3.
We
Economic pressure by Her Majesty's Government or British firms 223 seems to offer much the most promising field for investigation (cf. HUG my telegram No. 790 of 7 June 1967). The whole question of visits to China by British shipping seems well worth considering now. learn from Butterfields that as a result of the 'Demodocus' case the Blue Funnel Line have been meeting in Liverpool to decide whether or not they should suspend the visit of ships to China. From Hong Kong's point of view the fewer British subjects who visit China, either by ship or other means of transport, and become potential hostages, the better. Butterfields point out, however, that the Chinese regard the Blue Funnel Line as under ar obligation at any rate to complete the programme of voyages alread: scheduled and to deliver cargoes which they have already contractea to carry. They fear that if Blue Funnel were now to suspend voyages and to announce the fact (or even make threats) to the Chinese, the result would be that 'Demodocus' with 30 British subjects on board, would be held even longer and the number of hostages increased to that extent. This seems a telling point. But it would appear worth considering whether, if and when 'Demodocus' is released, Blue Funnel should cut down visits and whether meanwhile other British shipping companies should be encouraged to follow suit.
260) OF THE PUBLIC RECORDS ACT 1958 IN THE DEPARTMENT UNDER SECTION THE ORIGINAL HAS BEEN RETAINED THIS IS A COPY
CEEEE
Foreign Office please pass Immediate to Peking 125.
Sir D. Trench
[Repetition to Peking referred for departmental
decision].
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