TNAG-0034-FCO40-70-Relations-with-China-1968 — Page 49

Znot

P.A.

SECRET

SECRET

As you are aware, I made arrangements to meet Mr. K.C. Jay yesterday (17th September). The meeting_was again lengthy but I think fruitful and interesting. following matters were discussed.

(1) Self and Johnston

2.

The

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Before I had any opportunity to give reasons for my visit, Jay rather excitedly said that he was pleased that his efforts concerning Self of the Hong Kong Bank had been successful. He claimed that his Peking contacts were in fact rather annoyed with the delaying tactics which the Shanghai authorities had brought to bear in respect of Self. It was his understanding that the Shanghai authorities had deliberately/taken action for some three weeks and had thereby earned themselves a reprimand from CHOU En Lai. He thought it important that Self should not be kept in Hong Kong for any length of time and said that he had that day spoken to Turner of the Hong Kong Bank suggesting an early posting. It was Jay's understanding that Self would now be transferred to Japan in the very near future.

3.

Jay then went on to mention the case of Johnston of the Chartered Bank Shanghai Branch. He said that here his position was very different and that he was reluctant to take action on behalf of Johnston. He said that the main obstacle was that, unlike the Hong Kong & Shanghai Bank, the Chartered Bank Headquarters were in London and that he, Jay, could have no real influence over the Chartered Bank Head Office activities, and these in certain circumstances could be embarrassing. On being questioned, Jay said that he had no definite information as to why Johnston had been detained, but understood that one of the main reasons was that Johnston had become very friendly with a member of the Bank of China staff in Shanghai and that such a relationship was very much frowned upon by Peking. He said at this stage he was not prepared to make any move concerning Johnston until the question of Self had been completely cleared, i.e. until Self had left Hong Kong (as will be noted below, Jay later changed his mind on this question of timing).

(2)

IPICCIOS Meeting - Hong Kong 30th September/4th October

4.

I told Jay that one of the main reasons I had asked to see him was to inform him that this meeting was due soon to take place and that among the delegates would be represent- ation from Taiwan: this was not, of course, a Government function but an international meeting arranged by an independent body. I told him that it was my understanding that Taiwan was being represented and that we had been told

In the that there would be no flying of national flags. circumstances, we wondered whether information should not be passed back at this stage through his channel so that there might be no misunderstanding. Jay thought that it might be an error to inform China of this at this stage, as it could well give them time and the opportunity to lodge some sort

/contd.

SECRET