Trade
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TALKING POINTS
1.
2.
We are most appreciative of the Australian
action in holding up the conclusion of the
agreement to export 2 million tons of
wheat to China, at a time when the disturbances
in Hong Kong were at their height. We did
not in any way want to frustrate the deal,
but we did think there would be some advantage
in holding up the signature of the agreement
purely because of the timing. We think the
action the Australians were able to take might
have a salutary effect.
We do not want to interfere with current
trade and we have no major change of policy
on trade with China in mind. But a study now
being undertaken by officials on future policy
on Hong Kong is tackling, among other things,
the question of our trade policy towards
China in the event of continued and strong
1
Chinese pressure against the Colony. We will keep
Pouch on this subject,
Situation in Hong Kong
3.
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m
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Disorders have ceased and the present tactics
are to organise token stoppages of work and
to continue with the subversive propaganda
campaign.
After an initial defeat the Communist
leadership in Hong Kong is in a state of some
disarray and may be awaiting a signal or
instructions from Peking.
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