their activities against Red China thus embarrassing H.M.G. and the Hong Kong Government. He was assured there was no question of this: indeed, the Taiwan authorities claimed that they had helped us, during the 1967 disturbances in Hong Kong, by urging their own people to lie low. He also mentioned a Taiwan suggestion that the Naval Liaison Officer should be kept informed of K.M.T. activities in Hong Kong so that through him, the Government there could be kept aware of what was going
on. 9. Mr. Royle then said that he had been asked by H.M. Consul to take up with the Nationalist authorities the case of Mr. Mycock, a British subject married to a Chinese girl. Apparently Mr. Myoock had been manager of an American company which had run foul of the Nationalist authorities over tax evasion. Because of this, Mr. Mycock had been refused an exit pormit. Mr. Royle said that he had taken up this matter with Nationalist Ministers, stressing that unless a permit was issued to Mr. Mycock within the next three month, he would raise the matter in London and he was sure that adverse publicity for the Nation lists would follow from this.
10. In general Mr. Royle's impression of Taiwan was that is economy was booming. Rice production was increasing; textiles were expanding and the production of motor cars and motor cycles was increasing by leaps and bounds. Unfortunately, on the other side of the coin, corruption was rife.
11. Before leaving, Mr. Royle mentioned that Mr. Heath proposed to set up a Conservative Party Group on Hong Kong with Mr. Royle as its Chairman. Its concern was with the future development of Hong Kong.
CONFIDENTIAL
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