TNAG-0034-FCO40-70-Relations-with-China-1968 — Page 52

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he would ask what the circumstances were concerning this

I commented that and whether anything could be done.

this was certainly one method of approach but would it not take a rather long time to obtain a definitive answer. He immediately said no, that it would not take long, no

In the circumstances more than a week or perhaps 10 days.

and in the face of his very strong reaction, I accordingly

He then went agreed that he should proceed as proposed.

on to say that at the same time he would take the opportunity of mentioning Johnston so that it would not appear that there was over-anxiety in regard to Grey. stances, I of course made no mention of LO.

(6) Power Struggle in China

8.

In the circum-

Jay later went on to say that in a recent letter from CHOU En Lai's secretary there had been comment that the next week or two was likely to be a vital period as CHOU was expected to be challenging Mme. CHANG Ching's authority: the reason for the challenge would be that, with chaotic conditions in the country brought on by the cultural revolution, China was in no position to withstand what was considered to be a real threat to her borders by Russia. Apparently CHOU En Lai now felt sufficiently strong to make this challenge and had no doubt as to its successful outcome.

(7) Relations with Britain

9.

Jay then commented on an alleged discussion some time ago between CHOU En Lai and MAO Tse Tung in which he claims that CHOU is said to have commented that relations were so bad that they could not possibly get worse and that

Saying everything should be done to improve the situation. that MAO had agreed with this policy, Jay then went on to comment that he was pleased to see that trade with Britain

improve had already improved and that he expected to see it still further within the context of China's capability to afford extra trade.

(8) Communist Press in Hong Kong

10.

Jay commented that he was pleased to see an improvement in the attitude of the local communist press. He said that quite recently definite written instructions had been received to the effect that the communist news- papers must keep within the law and not attack the Hong Kong Government. He said that there had been sharp reaction to this in newspaper circles and in particular FEI Yi Ming had

In been loud in his protests against the instruction. spite of this, Jay thought there would be no doubt that the Peking instructions would be obeyed and that we would see a very definite improvement, in particular after 1st October. (9) Chinese Business Interests in Hong Kong

11.

Jay said that recently the communist banks and trade organisations had been given very difficult targets to reach and that certainly they would not be achieved unless

/contd.

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