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demands of which the main ones were as follows:
(a) return of Inspector Knight and two Chinese Policemen,
(b) return of the Chinese villager abducted on 11 October,
(c) the return of a Sterling gun and other equipment seized on
11 August,
(a) agreement to some permanent method of consulting on border
problems.
At the second meeting, agreement was reached on the exchange of
police personnel, Sterling gun and other equipment for arrested Chinese,
on opening of Man Kam To bridge and on compensation. A time-table for
giving effect to this agreement was laid down. We made no headway with
our demand for the return of the Chinese villager abducted on 11 October
(who was in any case a Chinese national). Our request for some permanent
method of settlement of border problems was not rejected but was stated
to be a matter which would probably require reference to Peking.
However, on 4 November, before the above agreement could be implemented,
we received a further message that the Chinese border authorities wished
to have another meeting to discuss certain unspecified points alleged to
be outstanding from the previous meetings. This further meeting and
subsequent meetings centred round the question of compensation to peasants
for loss of crops. It seemed that there was small prospect of reaching
any overall agreement without some payment from our side.
accordingly agreed that an offer of payment should be made in terms which
would avoid any suggestion that compensation was being paid as a matter
of right.
Ministers
The Governor reported to us the return of Senior Inspector Knight
to British territory on 20 November (it is not known if he escaped or was
allowed to escape) but this development had no apparent effect on the
progress of the talks although it may have been the reason why the
/Chinese
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