TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 204

NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

CONFIDENTIAL

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It is believed that the best way to secure

the release of the remaining six British

subjects detained in China is to work for an

overall improvement in Sino/British relations.

(Defensive If specifically asked whether

detained British subjects are hostages for

confrontation prisoners)

Except in the case of Mr. Grey, the

Chinese have never made any specific suggestion

that persons serving sentences in Hong Kong

should be exchanged for British subjects

detained in China.

Relations between China and Hong Kong

The situation in Hong Kong is now back

to normal after the disturbances of 1967. At

the same time, the normal working relationship

between China and Hong Kong, which existed

before 1967, appears to have been resumed.

For our part, we shall continue to foster

normal relations between Hong Kong and China,

and this is very much to the benefit of both

law

sides. At the same time the rele must continue to be maintained in Hong Kong.

Sino/British Relations

Our relations with China have certainly

begun to improve, although so long as British

datained

subjects are incorrectly treated in China

this improvement will inevitably be limited.

Official contacts have nevertheless been

rather more relaxed, while commercial relations

are entering upon a much more active phase.

The Chinese are of course expanding their

foreign trade generally: I am confident that

/we shall

CONILI DENTIAI

The

tital Mlume of China's

froeign trade with durige

and Japan rose from £536 million in 1967

to ₤617 million last year.