RESTRICTED
5. ALTHOUGH THERE CONTINUED TO BE LITTLE SPECULATION ON THE CONTENTS OF THE TALKS SO FAR, THE EXPRESS (INDEPENDENT) SAID THAT THE CHEERFUL FRONT MAINTAINED BY THE TWO SIDES MASKED AN ESSENTIALLY TENSE SITUATION. BRITAIN ADHERED STILL TO THE THREE UNEQUAL TREATIES WHILST WU XUEQIAN'S RECENT STATEMENT (MY TELNO 1127) CONFIRMED THAT CHINA WOULD NOT NEGOTIATE SOVEREIGNTY.
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MR WALKER, RESEARCH DEPT
MR ROBERTS NEWS D
HKGO, LONDON
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