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death of a Chinese Trade Unionist in a Hong Kong prison). For the most part there is very little pressure in Hong Kong for the release of the prisoners and the Tang case was fairly quickly dropped from communist propaganda. In general communists in Hong Kong seem resigned to the fact that the confrontation prisoners will serve out their sentences.
5. In his analysis of recent developments in Sino- British relations I think that Mr. Denson perhaps exaggerates the extent to which they have deteriorated. On the debit side a number of events are known to have displeased the Chinese; a) our vigorous representations on behalf of Mrs. Martin and Mr. McBain; b) the supplement on Taiwan in The Times; c) E.C.G.D. cover for the construction of a power station by a British firm in Taiwan; and d) the dispute over the dumping of Chinese alarm clocks on the British market. It is true that there has been a general increase in the amount of space in the Chinese press given to anti-British reports. But the Americans have been similarly attacked at the same time as the Chinese have resumed
contacts in Warsaw. It is possible to argue that the purpose of these articles was less an indication of Chinese displeasure than an attempt to demonstrate that we are a weak and insignificant power, racked by political and economic crises and therefore not presenting any significant threat to Chinese interests. This line of argument could well be used to justify Chinese inaction to their supporters in Hong Kong over the issue of confrontation prisoners. The articles are also part of the continuing Chinese attack on imperialist
powers.
6. As regards other signs of displeasure by the Chinese cited by Mr. Denson, I have seen no evidence that the Chinese are annoyed by the closure of the Reuters office. On the contrary they could have made difficulties for us but were in fact fairly helpful. We have seen no evidence either of the Chinese creating administrative difficulties in other areas. A.MOPBW representative is now in Peking discussing the reconstruction of the Chancery building with the Chinese and these negotiations will no doubt provide some evidence of whether we can expect the Chinese to be helpful or not over this question. Since the arrest of Mrs. Martin and Mr. McBain there has been no
further harassment of other British subjects in China.
SECRET
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