CONFIDENTIAL
137704 MDHIAN 1518
8. WE HAVE SOME EVIDENCE TO SUGGEST THAT THERE MAY BE DISAGREEMENT WITHIN GUANGDONG BETWEEN THE PSB, WHO ARE THE SOURCE OF THE OFFICIAL CHINESE VERSION OF THE STORY, AND THE FOREIGN AFFAIRS BUREAU. WE HAVE HEARD ONE STORY THAT THERE MAY BE A TEAM FROM PEKING WHO HAVE BEEN SENT TO INVESTIGATE THE TRUTH, BUT WE HAVE NO FIRM EVIDENCE OF THIS. IN ANY EVENT THIS AFFAIR HAS DRAGGED ON FAR TOO LONG. THE LATEST CHARGE THAT THE 5 CREW HAVE ADMITTED TO TAKING PART IN SMUGGLING IS SERIOUS (IF NOT WHOLLY SURPRISING AS A FORM OF DEFENCE BY GUANGDONG).
9. WE OURSELVES HAVE DECIDED ON SOME AREAS WHERE WE WILL SHORTLY ANNOUNCE ACTION TO MAKE SMUGGLING INTO CHINA MORE DIFFICULT AND LESS PROFITABLE. WE WOULD LIKE TO EXPLAIN THESE POINTS TO THE CHINESE AT A BORDER MEETING AS A SWEETENER WHICH MIGHT HELP RESOLVE
THE ISSUE.
10. BUT GIVEN THE CONTINUING BLOCKAGE IN SETTING A DATE FOR A MEETING, WHICH IS LEADING TO INCREASING DISQUIET IN HONG KONG, WE WOULD BE GRATEFUL IF YOU WOULD AUTHORISE PEKING TO SPEAK TO THE MFA ON THE LINES IN MIFT. THIS WOULD GIVE PEKING OFFICIALLY A STORY OTHER THAN THAT WHICH GUANGDONG HAVE NO DOUBT SUBMITTED, AND MIGHT CAUSE THEM TO INVESTIGATE THE MATTER IF THEY ARE NOT DOING SO ALREADY. WE HOPE IT WILL RESULT IN GUANGDONG BEING MADE TO SET A DATE FOR IMMEDIATE DISCUSSION OF THE MATTER.
11. WE ARE SEPARATELY PUTTING TOGETHER A NOTE ON ALL OF THE INCIDENTS THIS YEAR FOR PEKING TO PASS TO THE MFA. BUT THIS CAN BE DEALT WITH IN SLOWER TIME. THE IMMEDIATE NEED IS FOR A MEETING TO RESOLVE THE 3 MAY INCIDENT.
FORD
YYYY
ΜΑΙΝ
30
LIMITED
HKD
FED
NEWS
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DISTRIBUTION
30
MR MCLAREN
MR BURNS
MISS SPENCER
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