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FINANCIAL TIMES ·
China presses
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for envoy
in Hong Kong
BY CHARLES SMITH, FAR EAST CORRESPONDENT
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FS
PBH
• PUSIR Av. Pusos
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1 3 APR 1973
Cha
APR 1973 19
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to F considerable / with the question of representative.
Rejected
| GHINA HAS been exerting pres- vice to China, but the flow is sure on
Britain so agree to the taken that this matter is con appoinuneat of A0
offical nected Chinese representative in Hoaz extent Kong. British
reluctance 10 agree to this proposal could delay the settlement of other
bilateral issues between the two countries, including plans for the
opening of a BOAC scheduled
· service to Peking or Shanghai
This has emerged from sources In both London and Peking, altbruch
China's sense of
P
Although Chinese officials regard the whole question of
■ representative in Hong Kong as being
I mature for solution the issue is not a new one.
It was Arst raised by the urgency over the matter may Chinese Government
la February, not, as gel, be fully shared by 1936, and rejected two
years Britain.
later by Britain, China raised the maiter again in the spring of 1971
and it is known to have come up in the jalka held in Peking last year by
Sir Alec At the moment the People's Douglas Home. the Foreign Republic
is represented in Hong Secretary, and Mr. Antbosy Kong by the director
of the Royle, the junior Foreign Offica Hasibua" (New Ghora) News
Minster responsible for Far Agency-in frangement which Eastern affairs.
Irony
bus continued since the estab Britain apparently avoided bshment of the
Communist giving a direct answer to the régime in 1949, but which the
Chinese proposal at both sets Government in Peking clearly of talks and
the malter is still regards as anachronistic.
understood to be "under con
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n
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Chinese officials have com- sideration by the UK. Govern mented on the
irony that ment. However there are obvious China should be about lo
estab- Teasons why there should be Wish a liaison office in Washing,
besitation about China's request. stop but cifrớt yet have a repre-
sentative on its own doorstep.
But i was assured in Pekine recently that the lack of a repre sentative
office in Hong Kong poses + number of practical problems, particularly
in the communications deld.
H
One is that an official Chinese representative LET Hong Kong could
become a focus for polit cal activity in the Colony whether or not
wanted this to happen.
China itself
Another fear is that the open- ing of a Chinese official missing might
Imply a change "In the Colony's status which, at the very least, could
undermine business confidence.
China claims it is not con- venient for members of lae Chinese
Government in travel through Hong Kong while the Britain and China are
representat.ve isque remains un- theoretically at nila over the settled
(A recent case in point status of Hong Kong since the was the new
Chinese ambassador U.K. regards the territory as a to Japan, who
travelled by British Calogy while China sees special aircraft to Tokyo
ratner, it is a piece of Chinese territory than pass through the British
which has passed under foreigh Colony.)
administration as the result of
Officials in Peking have also an "unequal treaty." indiested there will
be difficul-
tles about agreeing on the establishment of direct rail
Talks
link between Hong Kong and This disagreement
however,
Canton while what they regard has not prevented a smooth as the
principal Isrue lo Hong Kong remains outstanding.
There is less precision in | Peking about the question of an ale
services agreement and the start of a BOAC sebeduled ser
working relationship between Chine and Hong Kong and there have been no
fears that Chioa
burry lo obtaio the
01
Colony's "reversion."
Whether or not China really means to link the Hong Kong representative
(ssue with the proposed ROAC Mights late China, progress on the latter
Issue appears to have been slow.
The text of an air services agreement has been presented to China by
Britain but there bas still been no detailed Chinese reaction to the
draft. It is hoped, however. That talks may get under way in London
during the bext few weeks.
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CONFIDENTIAL
Not the Used.
FORM OF WORDS TO BE USED BY THE SECRETARY OF STATE IN TALKING TO THE
CHINESE FOREIGN MINISTER
"I discussed this subject with you and with the Prime
Minister when I visited China last autumn. I told the Prime
Minister on 1 November that I would like to think about the
matter and I would get in touch with you in due course.
"The positions of our two Governments on the status of
Hong Kong are necessarily different. But, as I see it, we have two
important interests in common. These are to preserve the stability and
prosperity of Hong Kong and to preserve the relationship which has
developed between our two countries. So far as Hong Kong is concerned,
stability and prosperity depend on confidence. Confidence is a tender
plant: it grows only slowly, but can wilt very quickly. If, as I
believe, we share an interest in the stability and prosperity of Hong
Kong, it follows that we also share an interest in the preservation
of confidence there.
"As far as the relations between Britain and China are
concerned, there can be no doubt that the situation in Hong Kong is a
factor of importance. If, therefore, we share an interest
in preserving good relations between our two countries, we also share an
interest in doing nothing in, or over, Hong Kong which could disturb the
situation there.
"I have given most careful consideration to your proposal since I spoke
to you and the Prime Minister last autum. In the light of this
consideration I have come to the conclusion that the time is not ripe
for a change in the pattern of your representation in Hong Kong. I would
therefore ask you not to press your proposal. It is my judgement that it
will be some time before circumstances might change in such a way as to
warrant an alteration in the arrangements which now exist."
Approved by the seciciary 87-sicie
CONFIDENTIAL
R.E.
375.
Afidentid.
Transcript of arks about Hong Kong made by China's Vice Foreign
Minister, Chiau Kuan-hua during an Interview with Alan Hare,
hanaging Director of the Financial Times and Charles Smith, Far East
Correspondent of the Financial Times. The Interview was held in Peking
on Friday, 30th March, 1973.
In response to a question (at the opening of the
interview) about the state of Sino-British relations, Chiao said
that, in general, relations were developing very smoothly. However,
there was one question which was "still not solved". This was the
question of the Chinese Government appointing a representative in
Hong Kong. If this matter was not settled, other questions "would
arise". Chiao said that relations between Canton and Hong Kong
were "very close" but many things "could become troublesome" without
a settlement of the representative issue. Hong Kong's relations
with the mainland were the same as they had been "since the Second
World War". At the moment, Chiao said, the Hsinhua director acted
as China's representative in the Colony.
Mr.
Chiao said that Premier Chou had discussed Hong Kong
"very clearly and frankly" with Sir Alec. But the British atill
seemed to feel "some difficulty" over the Chinese proposal.
Royle had said in June that Britain "wanted to keep the balance"
in Hong Kong. The proposal to station a representative in Hong Kong
had been made "a long time ago" but the time for solution of the
question was "now mature". Practical matters whose solution could
be facilitated by an agreement on the representative included the
establishment of air connections and a direct rail link between
Hong Kong and Canton and the issue of visas for China in Hong Korg.
Chiao said it was difficult to issue visas without an official
representative. He pointed out that China was about to open a
liaison office in Washington. It was ironic that it could not have
a representative in Hong Kong.
P
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P
ist
At the end of the interview, Chiao reverted to ilong; Kong and the
question of BCAC flights arose. Chiao said he "believed it would be much
easier for BOAC to fly to Teking" if the represent tive issue were
settled. The representative issue and the question o*
airline connections were "connected to a considerable extent".
the moment it was "not impossible, but not convenient for Chinese
officials to go to Hong Kong". China's ambassador to Japan went by
special aircraft to Tokyo "otherwise he could have taken the Hong Kong
route". In answer to questions about 1998, etc. Chiao said "the problem
of Hong Kong's future does not lie in the long term".
The British public was "not clear about changes in the
world situation. 1998 is still 25 years away - with 25 years we
can work great changes". Changes in the world situation
"including the realignment of various forces" would continue and
would accelerate.
Chiao said that the representative issue had
not been discussed on his own visit to London because of lack of
time.
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IMMEDIATE CYPHER/CAT A
GIS 200
CONFIDENTIAL
FM FC 0 1217102
(FE)
CONFIDENTIAL.
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DESKBY 135001Z BOTH,
TO IMMEDIATE GOVERNOR HONG KONG TELEGRAM NUMBER 365 OF 12 APRIL 1975
AID TO PEKING,
CHINESE REPRESENTATION IN HONG KONG
ON THE STRENGTH OF REMARKS MADE TO CHARLES SMITH OF THE FINANCIAL TIMES
BY CH'IAQ XUAN-HUA AT A RECENT INTERVIEW IN PERING, SMITH'S COLLEAGUE
ROBERT GRAHAM ASKED ME ABOUT THIS SUBJECT AT AN
UNATTRIBUTABLE BRIEFING WHICH I GAVE TO THE BRITISH DIPLOMATIC PRESS
TODAY (12 APRIL). Į SAID THAT THE QUESTION OF OFFICIAL CHINESE
REPRESENTATION IN HONG KONG HAD BEEN A LIVE ONE FOR SOME
TIME: IT WOULD NEED CAREFUL. CONSIDERATION. I DID NOT THINK,
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HOWEVER, THAT THE LACK OF A SOLUTION NEED HOLD UP THE DEVELOPMENT OF
COMMERCIAL RELATIONS BETWEEN BRITAIN AND CHINA. NOR DID I THINK
THAT IT WOULD IN FACT HAVE THIS EFFECT.
2.
SMITH INTENDS TO PUBLISH A PIECE ON THE SUBJECT IN THE FINMICIAL TIMES
TOMORROW (13 APRIL). WE HAVE PUT THE CHINESE PROPOSAL IN ITS HISTORICAL
CONTEXT AND HAVE EXPHASIZED TO HIM THAT IT IS STILL UNDER
CONSIDERATION.
3.
CH'IAO KUAI!-HUA APPARENTLY TOLD SMITH THAT ONLY **ONE BIG PROBLEM''
REMAINED IN RELATIONS BETWEEN BRITAIN AND CHINA: THE
QUESTION OF OFFICIAL CHINESE REPRESENTATION IN HONG KONG. THE SOLUTION
OF OTHER PROBLEMS, SUCH AS THE ISSUE OF VISAS · (WE. SHALL ASK SMITH TO
ELUCIDATE THIS) AND THE ESTABLISHMENT OF AIR AND RAIL LINKS BETWEEN HONG
KONG AND CANTON, WAS LINKED WITH ITS SOLUTION. IN ANSWER TO A QUESTION,
CH'IAO SAID THAT THE GRANT TO BOAG OF A SERVICE TO CHINA WAS 'CONNECTED
TO A CON31 DERABLE
EXTENT''.
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CONFIDENTIAL
/4. WE
CONFIDENTIAL
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4. WE SHALL TELEGRAPH FURTHER WHEN VE HAVE SEEN THE PRESS TOMORROW AND
HAVE HAD TIME TO DIGEST THE IMPLICATIONS OF WHAT CH'|AO IS ALLEGED TO
HAVE SAID.
DOUGLAS-HOME
DEPARTMENTAL DISTRIBUTION
FED
IKIOD
NEWS D
RESEARCH D (F E SECT)
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CONFIDENTIAL
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A Cima
office in Hongkong
a certainty
By KI VIN SINGLADE
China is vir
hy certain to have a
"representative" office in alongkong within the next few years.
But just when it will be set up is the big question.
H
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Talke at a "sunapr" lysed are being held in Wintchall and an Peking
about the formalun, los M. tus and the bkdy stalling of the Chinese
office in Lion; "DEN
But although China has no id que queridong në representation twice with
Brush ministea in the past year it has not been pressed recently at
maartenal fercl.
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It seema kkely, howev NEUMANNA að vill eventually be pivcob, Londo
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MORNING POST
APRIL 26TH '73
Anesiar danger is that
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Prime Minister. he said he Dr Cinese Government could not say, but added
it and sock. "Certainly been discussed by propel the Foreign and Graves
me the punge eye. Commonwealth Office."
Lord Brockway said he
LANI, E.
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One of the forenave advocacy of an representation in Hong Kong w.chin
within the present Government is the Undo Secretary of State for Foreign
auk Commonwealth Affairs, Me Anthony Boyl..
It is understood that songe Mr Righ
7
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year, when he was "overwhelmed" by an enthusiastic Cluese welcome and
flew in a bronhijet murernft with an aid Britisie crew. back to Hongkong
from Snanghai, he has been praising the "new China" in London.
It is known that Hongles; Governinent representatives have sent a full
and detailed report to Fundon about the possibilities of establishnient
here of a Chinese CHKAS
These arguments are, on the good sales
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(c) It will mean greater civiliovence in Hongkong if an offical Chinese
representative in the Colony indicates to local people
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But on the other side of the coun, it is beloved the foulement,
points have been taken into ovnsiderainomi
Du tones of powce there will be no problems,but in times wi strife the
establishment of an oificial Chinese office in the Colony would be a
focal point for trouble.
This could have a crucial bearing on confidence in the Colony,
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bic leven of the
The official Chinese representatives in Hongkong today, are split into
three carefully selectou brunçõest
Buahua, the New Chian News Agency staff, of which the leading nienaber
is Me Lat Weiln, who travels to an TEA
jolitarik passport which devandes son as a bona didel raconoce of the
Peking consulart
The Poking guera in Hongkong are also "kliplomats" according to Thier
passports.
ARRY
niembers
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C. Maqbers of the China Resources staff, who head unula milion dollar
negotia Tina with Western organisa- Don, and
¤ Staff of the Bank of Chun The unen who have two major roles in die
economy as lae Colony: haruling the vast in Chow (nd vennittances
Overticus Chinese and the trade denin (mostly involving Tiongkong food)
from China.
UNGEN
Mituria!
OUR MAN IN HONGKONG
CHINA is continuing the process of estualishing friendly bilateral
relations with the count on its periphery, with the obvious exception of
the Soviet Union. It is hardly conceivable that in i 2 months' time,
China's relations with India and Bangladesh will be as artificially
strained as they are today. It is even possible that China will close
the circle. Just as Peking's vitriolic attacks on US imperialism rose to
a climax prior to the arrival in China of Henry Kissin- ger, so the
level of abuse being directed against Mos- cow today could conceivably
presage an attempt to achieve a détente with the "social imperialists."
--
J
The revival of the suggestion that China should up a representative
government office in Hong- kong must be seen within the context of
China's general campaign to clear the decks of any obstacles that could
impede the smooth operation of its for- eign relations and foreign
trade. Peking has given various verbal assurances to British ministers
that the question of Hongkong is of no particular mo- ment and can wait
until the problem of Taiwan has been settled. China's need to import
sophisticated foreign technology makes Hongkong's contribution to its
foreign reserves now running at about £500 Įmillion (US$1,245 million)
annually an essential factor in China's economic equation, for the
recent harvest setbacks will ensure that Peking will go on importing
cereals at least for the next few years, while its generous foreign aid
programme also cats into the limited supply of hard cash. An official
ission could facilitate the flow of trade and could barantee that
Hongkong would more efficiently ex- pand its future role as a "shop
window" for foreign technology on China's doorstep, within a commu- nity
offering no political challenge to China which obviates the need to have
foreign sales representa tives stationed permanently in Peking or
Canton.
Counting tomorrows
At first glance, it would appear that the advan- tages to Hongkong would
be even greater than those accruing to China. By establishing such a
mission, Peking would come close to giving de jure recogni" tion to the
"separateness" of the enclave on ils coast, thus conferring an even
longer term future on a community which has until recently been unable
to count its tomorrows.
Nevertheless, Hongkong and Britain (which will be the final arbiter of
the response to Peking) are de- termined to look this gift horse very
cautiously in
e mouth. The colony's past experience of a Chi- hese commissioner who
represented the Nationalist Government until 1950 was not a happy one.
Less trusting souls recall the excesses of the 1967 riots and ask
themselves how much more embarrassed the
Hongkong Goverment would have been had there been a Peking
representative in the colony at that time.
4
But even if China's foreign policies do not change dramatically yet
again, the head of any such mission would be an obvious target for
petitions from disgruntled elements in Hongkong's society, from striking
schoolteachers and evicted tenants to those resentful of increased Crown
rents and the landlords of opium divans and unregistered doctors
operating within the "Walled City," Presumably Hongkong will want a
fairly watertight guarantee that the mission woukl not give Peking's
backing to such causes. If not, the Governor could easily find himself
in the situation feared by one of his prede- cessors, Sir Alexander
Grantham, who was against the proposal (when mooted in 1956) on the
ground that it would present him with a "rival" governor.
A question of face
On the other hand, Hongkong's colonial, proto colaire society does not
accord proper prestige to the Government of the People's Republic -
diplo- matically or socially. It is widely recognised that the heads of
the New China News Agency, the Bank of China and of the other branches
of China's govern- ment in Hongkong are in every sense official re-
presentatives (a fact which in itself disposes of most of Hongkong's
worries about how the head of a Pe- king mission would conduct himself).
Inadequate steps are taken to ensure that these distinguished men are
accorded their proper importance within the life of the colony.
On balance, it would seem that the gains to Hongkong's status and the
other marginal advan- tages which would accrue from such a mission out-
weigh the possible disadvantages listed by the cau- tious. Another
factor which must now enter into the calculations is the loss of
goodwill that would result from a refusal by London to respond to
Peking's feelers.
There is one way of swinging the scales defini- tively in Hongkong's
favour, London could point out to Peking that Hongkong exists today by
virtue of certain 19th-century treaties denounced by China as "unequal"
and therefore invalid. If China is to establish an official mission in
Hongkong, London coukl justifiably ask China to take advantage of the
occasion to state in black and white that it was will- ing, of its own
volition and obvody under no duress, at least to let the New Territories
leastrum its course. I would be a fair request, and there is no reason
China should remain enignetically owave on the issue. With such a
guarantee, Honkong Crukl welcome with open arms the arrival of Peking's
man,
+
ne building ban by putting up wned houses up to three gh. The order of
the day in Bulgaria, though, is quite explicit : clear land and return
it to the
storeys
INTERNATIONA REPORT
farmy.
China
No incentives, just due rewards
FILOM A SPECIAL CORRESPONDENT
The trains now run faster-as well as on time-in China and the internal
Purlines fly at night which they did not do on your correspondent's last
visit
6 years ago. Today he purged victims of the cultural revolution are
being quietly restored and production is being increased by higher wages
and material incentives. There are confident assur- ances that the fatal
recklessnesses of the 1958 great
leap-now cheerfully admitted will not be repeated. There wil more
discretion, Bexibility and
planning," and "decentralised
adjustments."
COMNIUNG
Conditions vary from 1.5 commune and from Shanghai to Canton, even on
the approved tours for "foreign friends" which, quite naturally and
understandably, concentrate on model teamis and
brigades. The value of peasany Labour also varies: able-bodied hand
working peasants are paid more Kan less productive comrades. "As Igde as
production goes up, personal jécomes go up," the leader of the Ho La
brigade
20. Operial Hy/1a
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The Economist Intelligence Unit
27 16. Jamar's Pizon, Løftes 5W LA INT
her
She want where they,
near lovely Wydih explained. In this showpiece commune which now deve-
lops cultured pearls, though far less effectively man the Japanese do, a
five- member family earned not quite £100 for 1,480 working days last
year plus allotpients of grain, firewood, oil and vegetables. The family
also grows vegetables on a private plot, whigh means one-sixtieth of an
acre.
At another thriving brigade outsidej Canton, 547 out of 986 households
had savings in the bank, a total of 150 houses had been built in the
past two years and gra bicycles and 280 sewing machines had been bought.
Briefings by singularly capable revolutionary com- mittee leaders stress
"increased produc- tion for the state with wider distri bution for the
passes." This principle differs from the sabotage operations carried out
by the disgraced Liu Shao- chi in the 60s, it is alleged, because Liu
evilly put the individual ahead of the state while the party now,
somehow, puts the state ahead of the individual though it relies on the
same incentives.
Comrade Lu Wen-tsai, veteran phairman of the Shanghai number one
steelworks, argued that Shanghai factories were still untainted by
material incentives. However, the fixed wage scales for workers vary
from 42.50 yen a month to 126 and Comrade Lu him- self earns 200. This
variation in the Shanghai wage levels reflected the degree of the
worker's political con- sciousness, production level and years of
experience." His own high wages, he explained, were due to his
pre-libera- tion activity as a party member and had been fixed for
different work in 1954.
**
THE ECONOMIST APRIJA 28, 1973
In Shanghai, Peking Cantors and the provinces, it is still frightening
to listen to clear-eyed young students and workers-hand-picked, of
course--in- sisting that they want only to continue in their present
humble miles, to po only where the party sends them, to develop no
personal ambitions or indi- vidual ralents in any foreseeable circuro-
stanges. Yet the column of about poo young persons, seen by chance
trudging
the station in Shanghai under evic- tion from their homes to some
strangg rural setting, looked neither joyful pe expectant. One million
have been práns- ferred from Shanghai alone in Me past five years.
Hongkong and China Ever closer
FROM OUR HONGKONG CORRESPONDENT
Peking's revived interest in opening a Chinese mission in Hongkong has
caused no surprise here. The Chinese have already renovated an official
rel= dence on Barker Road on the peak -which was once barred to all
Chiues". Appropriately it is across the road fron the home of the
American consul genera), where agents from the Central Intelligence
Agency, lying on their stomachs around the pool, could f necessary
photograph all visitors.
The last time the proposal for official diplomatic representation was
openly made was in 1956, but the governor, Sir Alexander Grantham,
objecte-l vigorously to the concept of "twin governors for the colony.
Now the mood has changed and although the matter will be officially
decided br tween Peking and London, opinion in Hongkong strongly favours
the pr
per- posal.
The last mainland representation in Hongkong belonged to the Kuomin-
tang, whose chief angrily departed for Brazil in 1950 after Britain
recognised. China. Apart from the red guard violence in Hongkong in
1967, which was directed from bellicose Canton and not from Peking,
Chiang Kai-shek was always more hostile to the colony than Mao has been,
A Peking liaison office in Hongkong is likely to hasten another decision
the restoration of direct rail- way passenger traffic between Canton and
Hongkong, without the irritating train change at the border. After all,
large Peking mission recently visited Hongkong to discuss with
imperialist interests the adaptation of western methods of hotel
administration for the "middle kingdom"-or, ratlier, the
middle peopledorn.
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CHINA (RELATIONS WITH
HONG KONG
42. Mr. Younger asked the Secretary of State for Foreign Affairs what
request he has received from the Government of the People's Republic of
China for the establishment of relations with the Gov- ernment of Hong
Kong and what answer has been returned,
Mr. Selwyn Lloyd: On 25th February the Chinese Government informed Her
Majesty's Chargé d'Affaires in Peking that they would like to establish
in Hong Kong an office of a Commissioner of Foreign Affairs of the
People's Republic of China with diplomatic and other staff. This
proposal raises a number of issues which are still under consideration.
Mr. Younger: Is the Foreign Secretary aware that in a recent public
statement Mr. Chou En-lai said that this was one of a number of matters
which made an improvement in relations between the two countries
difficult? Since this request apparently came in February, is it not
about time that Her Majesty's Govern- ment made up their minds about
what scems to be a quite normal proposal between States which recognise
each other diplomatically?
Mr. Lloyd: I think that upon reflection the right hon. Member will
realise that this question does raise a number of points. I do not think
that real complaint can be taken about the time which wo have so far
No comments yet.
Private notes are available after approval.