fco-21-494-china-watching-in-hong-kong — Page 4

such an urgent need to improve its own information about China to make
that disadvantage seem a reasonable one to accept.

3.

I dare say you feel these objections to be rather exaggerated. One could
argue the case with the Hong Kong Govern- ment and possibly modify the
proposal to make it more acceptable. But I think the doubts of the Hong
Kong Government would not be entirely removed. I should expect the
Governor to feel rather more strongly on the subject than the three
members of the Colonial Secretariat that I have consulted. I should
therefore strongly prefer to drop the suggestion that a China Watcher
should be part of my office.

4.

I think the comparison with the Hong Kong officers in Brussels, Geneva
and Washington is not conclusive because there vas no alternative method
of installing officials with diplomatic rank (and in the case of
Brussels I remember only too well that the U.K. insisted on keeping the
Hong Kong officials at arms length).

5.

I see the objections to attaching the China Watcher to J.8.I.S. and the
practical and other difficulties in making him part of the Trade
Commission or the Regional Information Office. I think we have therefore
reached the conclusion that

J. Murray, Esq., CMG,

Far Eastern Department,

Foreign & Commonwealth Office,

LONDON, S.W.1.

CONCLUS

/contd.

CONFIDENTIAL

1

2

for the time being at least there is no chance of posting a China
Watcher to Hong Kong. The situation might change

if the Regional Information Office or the Trade Commission had to move
into new offices.

6.

I am sorry that I started a correspondence

that has proved unfruitful.

Your ever, title.

(A.F. Maddocks)

Copies to:

J.B. Denson, Esq., OBE, PEKING.

M.P.V. Hannam, Esq., B.T.C.

A.C. Ashworth, Esq., OBE, R.I.O.

CONEAL

12

ROSLIVED IN REGISTRY No.50 14 MAY 1969

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CONFIDENTIAL

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Many thanks for your letter of 11 March about China- watching in Hong
Kong.

2. I am glad that we agree on the nature of the problem and the size of
establishment required. The outstanding question is to decide from where
our China-watcher should operate.

3. In your letter you proposed that we might consider attaching him to
J.S.I.5. Frankly, I am not happy with this suggestion for a number of
reasons. As you commented in your letter there is a risk that he would
become a political adviser to the military and spend a good deal of time
polishing their drafta. J.3.1.3. is only one of the sources of
information on which we would want him to draw. I wonder too whether his
association with J.S.I.3. might prejudice his relations with individuals
and organisations outside official circles. He might find it difficult
to explain his position to academics and other bodies engaged in
research on China. Equally, I still consider that the Region Information
Office and the Trade Commission would be unsuitable. The Trade
Commission in particular must seen to outsiders an odd place to put a
political analyst and might appear to the suspicious sa à cover for a
different kind of operation. I understand too that any change in the
terms of reference of the Trade Commission would require further
discussion with the Governor. At present these are strictly defined as
the promotion of U.K. commercial interests in the Colony and the
projection of U.K. interesta,

This brings me back to your own office. I fully appreciate the
difficulty of incorporating an officer into your own staff who would be
working for the U.K. Government and not responsible to the Hong Kong
Government. It would be bound to raise a good deal of opposition. But I
wonder whether there is not a way round this. Would it be possible to
assign the China-watcher to the Hong Kong Government? could (as a Deputy
Political Adviser) be formally responsible for keeping you, and thus the
Hong Kong Government, informed about developments in China - and you or
he could pass our requirements on to us. In this way there would be no
conflict of loyalties and the constitutional proprieties would have been
observed. Naturally we would not expect the Hong Kong

A. F. Maddocks, Esq.,

HON RONA

He

CONFIDENTIAL

- 1 -

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12

CONFIDENTIAL

+

Government to pay his salary. This would be paid froz the Foreign Office
Vote. As you know, H.M.G. have agreed in the past to not too dissimilar
arrangements whereby officers representing Hong Kong are posted to our
Missions abroad. This is the case I believe in Brussels, Geneva and
Washington. The officers in question are paid for by the Hong Kong
Government. These arrangements seem to have worked well and there is no
reason why this should not be the case in this instance too. I can also
see some advantage to the Hong Kong Government in having available an
expert China-watcher.

5. I realise that you would probably wish a proposal of this kind to be
put formally to the Governor. We would be quite happy to do this, but
would first want to clear our lines with Personnel and Establishment and
Organisation Departments. In the meantime it would be useful before
seeking authority here for our proposal if you could let me know
informally whether you think this proposal is likely to be acceptable to
the Hong Kong Government.

(Janes Hurray)

Copies to: J. B. Denson, Esq., 0.B.E., PEKING

I. P. V. Hannan, Esq., B.T.O., HONG KONG

A. C. Ashworth, B.I.D., HONG KONG.

CONFIDENTIAL

(100) DL 391999- 1,900 249 Hm.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential Restricted. Unclassified.

PRIVACY MARKING

In Confidence

DRAFT Letter

To:-

A. F. Maddocks, Esq., HONG KONG

Type 1 +

From

James Murray

Telephone No. & Ext.

Department

Floy of

Many thanks for your letter of 11 March about

China-watching in Hong Kong.

2. I am glad that we agree on the nature of the

problem and the size of establishment required. The

outstanding question is to decide from where our China-

watcher should operate.

3.

In your letter you proposed that we might consider

attaching him to JSIS. Frankly, I am not happy with

this suggestion for a number of reasons.

As you

commented in your letter there is a risk that he would

become a political adviser to the military and spend a

good deal of time polishing their drafts.

JIS is only

one of the sources of information on which we would

want him to draw. I wonder too whether his association

with JSI3 might prejudice his relations with individ-

uals and organisations outside official circles. He

might find it difficult to explain his position to

academics and other bodies engaged in research on

Equity

China. Os fother hand, I still consider that the

Region Information office and the Trade Commission

would be unsuitable. The Trade Commission in particular

must seem to outsiders an odd place to put a political

analyst and might appear to the suspicious as a cover

for a different kind of operation. I understand too

that any change in the terms of reference of the Trade

/Commission

NOTHING TO BE WRITTEN IN THIS MARGIN

2.

( Casa Mifuky Alichoul Adres)

He could be formally

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Commission would require further discussion

with the Governor. At present these are

strictly defined as the promotion of UK

commercial interests in the colony and the

projection of UK interests.

4. This brings me back to your own office.

I fully appreciate the difficulty of

incorporating én officer into your own staff

who would be working for the UK Government and

not responsible to the Hong Kong Government. It would be bound to raise
a good deal of

opposition, But I wonder whether there is not

a day round this. Would it be possible Fer

émemplo to assign the China-watcher to the

Hong Kong Government? In this way there would

be no conflict of loyalties and the constitu-

tional proprieties would have been observed.

Naturally we would not expect the Hong Kong

Government to pay his salary. This would be

paid from the Foreign Office Vote.

know, RMG have agreed in the past to not too

dissimilar arrangements whereby officers

representing Hong Kong are posted to our

Missions abroad.

As you

This is the case I believe in

Brussels, Geneva and Washington.

The officers

in question are paid for by the Hong Kong

Government.

These arrangements seem to have

worked well and there is no reason why this

should not be the case in this instance too.

I can also see some advantage to the Hong Kong

Government in having available an expert China-

watcher.

5. I realise that you would probably wish

a proposal of this kind to be put formally to

the Governor. We would be quite happy to do

this, but would first want to clear our lines

with

NOTHING TO BE WRITTEN IN THIS MARGIN

WEBDL 51-7406

with Personnel and Establishment and Organisa-

tion Department. In the meantime it would be

seful before seeking authority here for our

íet

proposal if you could let me know informally

whether you think this proposal is likely to

be acceptable to the Hong Kong Government.

6. I am sending copies of y letter to the

recipients of yours.

Judiarany.

1

¦

3.

CONFIDENTIAL

Reference

I

I

:

:

|

:

Mr. C. Wilson,

Far East Department

I can see the difficulties in, and the objections to, attachment to the
J.S.I.S., the Trade Commission and the R.1.0. Attachment to the
Political Adviser's Office would clearly seem to offer the most
appropriate niche; and Mr. Murray's proposal (paragraph 4 of your
minute) may provide the basis for terms that Hong Kong will find
satisfactory (for the reasons given in paragraph i of Mr. Gaminara's
minute I do not think we could fit this appointment into the personnel
exchanges we hope to organiae).

2. We shall, I feel sure, encounter a great deal of opposition in Hong
Kong to taking into their

Government machine an officer who is not working for and responsible to
them. I have little doubt that we would be equally reluctant to agree to
a similar arrangement in Whitehall if asked. We have, however, agreed to
not too dissimilar arrangements whereby officers representing the
interests of Hong Kong are posted to our embassies and missions in
Brussels, Geneva and Washington and are paid for by the Hong Kong
Government

3. I do not think it would be fair to Mr. Maddocks to ask him to take
this matter further; nor do I think we would get anywhere by doing so, I
think his letter at (8) was written after he had taken soundings of his
colleagues' views. I suggest that a draft letter from Mr. Moreton to the
Governor might be prepared:

(a)

putting to him the case for a China-watcher in Hong Kong (not omitting
some reference to the dividend for Hong Kong);

(b) indicating the possibilities we have

examined and the reasons why they are unsuitable;

(c)

(a)

suggesting Mr. Murray's proposal (and possibly referring to its
similarity to arrangements for the Hong Kong posts at Brussels, Geneva
and Washington);

offering, if the proposition is acceptable in principle, to discuse any
problems re- lating to the definition of the officer's functions and his
relationship with the Hong Kong Government when Mr. Moreton visits Hong
Kong with Lord Shepherd in early June.

bos. Carter

(W. S. Carter)

Hong Kong Department

|15 April. 1969

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CONFIDENTIAL

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Reference.

You asked me for my views on the matters dealt with in this file.

2.

Of all the proposed solutions to the problem, I cannot help feeling that
despite Mr. Maddocks' objections the best place for the proposed China
watcher would be in Mr. Maddocks' office. I must confess that I share
Mr. Wilson's fears about the outcome if he were assigned to JSIS: it
seems to me that in this event he would become little more than a
drafting officer who would spend a lot of his time dealing with JS18
material and such an arrangement would, I feel, cut across the main
purpose of his function which, as I see it, would be the co-ordinatio of
material derived from a number of different

sources.

3.

If he were attached to the Trade Commissioner's office, he would
presumably be responsible to the Trade Commissioner and this would not
be at all appropriate. You will recall that we have been very careful to
ensure, in consultation with the Governor, that the terms of reference
of the Trade Commissioner's ataff (I am thinking particularly of the
Information Section of the office) should be confined to United Kingdom
trading interests and projecting the United Kingdom image in that
sphere.

4. Mr. Wilson mentions the possibility of in some way grafting this
scheme on to our proposed exchange of Chinese-speaking personnel as
between HMG and the Hong Kong Government. However, the whole idea of
that scheme is based on a straight exchange of personnel as between the
two Governments so that each officer would work for the other
Government. I doubt therefore whether this proposal is a starter.

5.

I can only suggest that Mr. Maddocks be asked to discuss the whole
matter with the Hong Kong Government who might be able to propose an
alternative niche for the China watcher, always on the strict
understanding that all expenses incurred in

connexion with the appointment would be met by HMG.

ME

T

26 March, 1969.

(A. W. Gaminara) Hong Kong Department

CONFIDENTIAL

Reference.

LJIL-.--

*.

Mr. Carter (Hong Kong Department)

I should be grateful for your views on Mr. Maddocks' proposals for a
China Watching establishment in Hong Kong.

2. Frankly I am not happy about his suggestion that we should place our
China Watcher in the J.S.I.S. set-up. I think there will be a real
danger that he would become political adviser to the organisation and
spend a great deal of his time knocking their assessments into shape. As
we see it, the output of J.S.I.S. is only one part of the information
pool which we would expect him to co-ordinate. I am also afraid that the
J.S.I.S. tag might well prejudice his relations with non-Government
organisations in Hong Kong concerned with research on China (academics,
specialist journalists and private research organisa- tions). It is our
intention that he should be able to move freely in these circles and he
might find his association with J.S.I.S. a handicap.

3. We have already considered the possibility of placing him in the
Regional Information Office and rejected it and I think you would agree
that the Trade Commission would also be unsuitable. It would look

too much like a cover for a different kind of

operation.

Flag AC placing him in Information

4. Mr. Hurray has suggested that we might, to meet the constitutional
proprieties, consider assigning our China watcher to the Hong Kong
Government as a second Deputy Political Adviser while still paying him
from F.C.0. funds. We could hardly expect the Hong Kong Government to
subsidise an officer working primarily for the U.K. Government although
to some extent they would benefit from his work, I should

be grateful for your views on whether this would be acceptable.

5.

When we were discussing this subject today, you mentioned that you were
examining with Personnel Department the possibility of arranging an
exchange achame with the Hong Kong Government by which their

/officers

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I

|

I

CONFIDENTIAL

officers were seconded to the F.C.0. and vice

versa. I understood that the object of this

scheme was to enable the Chinese language cadre

in the F.C.0. to keep their hands in.

When you have had a chance to read the papers attached you

will be able to see whether our scheme could be

grafted on to yours. Alternatively, you may be able, from your knowledge
of the set-up in Hong Kong, to suggest another slot from which our China

Watcher could work.

lation

(C. Wilson)

Far Eastern Department

21 March, 1969

CONFIDENTIAL

F

C.S. 4LA

10.000-2/

CONFIDENTIAL

RECENS

98

COLONIAL SECRETARIAT

LOWER ALBERT ROAD

HONG KONG

REF. SCR 2/4841/69

21 maa

FEC 10/13 Rear James,

11 March, 1969.

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ile speak.

Mr Wilson 213.

118 Marle

Thank you for your letter of 29 January about the possibility of doing
more China Watching in Hong Kong.

2.

I agree with the analysis in your letter of the kind of material which
could be exploited by a China Watcher from the Diplomatic Service.

3.

I also agree that it is reasonable to start with one officer, probably
of 1st Secretary rank, and see whether he justifies his keep.

4.

The difficulty is to decide where he should be put in Hong Kong. I said
in my letter of 2 December that he should not be attached to my office
but to one of the existing U.K. offices. It is true that both the Trade
Commission and the Regional Information Office would have difficulty in
providing him with office space, secretarial assistance and secure
arrangements for his papers. But some of these administrative problems
apply to my office too, for example, there is no spare room in the
Secretariat's offices. In addition there is the important point that I
am working for the Hong Kong Government whilst the China Watcher would
be working for the Government of the U.K. The difference might seem
small in Whitehall but it is important here. There would be no
difficulty in giving the China Watcher access to information originating
in the Hong Kong Government wherever he is put. It is not necessary for
him to be attached to me or any other part of the Hong Kong Government
in order to have that access. From my point of view it would be a
disadvantage, and possibly some embarrassment, to be responsible, even
theoretically, for an officer working for the U.K. Government. I hope
therefore that some other solution can be found.

5.

We have just had a visit from Brig. Willison (Brig., General Staff
(Intelligence), Ministry of Defence), who suggested that the China
Watcher should be accommodated

J. Murray, Esq., CMG,

Far Eastern Department,

Foreign & Commonwealth Office,

LONDON, S.W.1.

/contd.

CONFIDENTIAL

CONFIDENTIAL

2

in the barracks with the Joint Services Intelligence Staff. That would
certainly be a happy solution to all the administrative problems. He
would have adequate offices, secretarial assistance, clerks, archives,
security, etc. The barracks are located in the centre, not far from the
Government offices, the U.S. Consulate-General, etc. He would be
welcomed by the military who are conscious that they lack expertise on
the Chinese political scene and would value his independent advice on
their assessments. John Denson remarked to me two weeks ago that the Far
Eastern Department has some times had some difficulty in Whitehall in
correcting errors of opinion sent to the Ministry of Defence by the
Joint Services Intelligence Staff. There would be some advantage in
having an officer in Hong Kong who might correct some of these errors at
an early stage and improve the quality of J.S.I.S. output. But that, of
course, is not the purpose I had in mind when I wrote on 2 December.
There is an obvious danger that if a Diplomatic Service officer vere
supplied and were installed in the barracks he would be submerged by the
much larger Service intelligence establishment there and would find it
difficult to do the independent reporting to you which originally
justified his establishment. I am not sure hov serious that danger would
be. It would depend to some extent upon the strength of mind of the
individual. there are difficulties about installing a China Watcher
elsevhere in Hong Kong you might think that J.S.I.S.'s offer is the best
solution.

6.

As

I think the only alternative would be to put him in the Trade
Commission. The security problem could be overcome by using the
facilities of the Economic Survey Section for storage of classified
papers overnight. there would be a need for more office space and a
secretary/archivist.

7.

But

On the whole I suggest that the J.S.I.S. offer should be accepted. It is
certainly cheaper.

Copies to:

Youn

ever

(A.F. Maddocks)

J. Denson, Peking, M.P.V. Hannam, B.T

B.T.C., A.C. Ashworth, R.1.0.

CONFIDENTIAL

I

CONFIDENTIAL

<

RECEIVEDY INJ ARCHIV

1 8 FEB 03

The 131

Leras James, or

Office of the British Charge

d'Affaires

Peking

11 February, 1969

C

Thank you for sending me a copy of your unnumbered

letter of 29 January to Maddocks on the subject of increasing

our China-watching strength in Hong Kong.

2.

I agree with your proposal.

I am sending copies of this letter to Arthur

Maddocks, Michael Hannam and Tony Ashworth in Hong Kong.

James Murray, Esq., C.M.G.,

Far Eastern Department,

FCO.

Your

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CONFIDENTIAL

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29 January, 196

&

I am grateful ter your interesting latter 93/2 of 7 December in which
you put forward proposals for improving Buy coverage of devels,ments in
China from Hong Kong, må subsequent correspondence on the rubject from
laman nat Ora4oak.

2. Fa looked >t this question some time age esazidaring the future of
the Mission in Poking. ex-m nẳng specifieslly the possibility of
outablishing alternɑtive vantage point from which to observe China it
was agreed than that Hồng Kông had special advantages not sharaf by
other post Its continuing valus se ra-arvoir of information expertise on
Chinese developmenta is astorted by the fact that so many foreign
governments have akoses to seal thins istehere so their Casmulär posts
in the Delony.

3. As your 379,20%ls were of interent to a number of Fhitehali
departments, either engaged in studying Chiness developmenta sp
pangoneible far organisations involved in similar work in Hong Kong, I
thought it would be nesful before replying reactione, ongeställy from
the Zesearch dejurtnauš, I. the Finistry of Defense. I was particul.rly
smoszoed to their viewe" on your sugge Opportuni 1100

thit là sinh ra trin missing liber their orgmis

that

si am in the Jolamy could do more to help. these points were diaremaad
at a meeting in the Dep-ztuan1. It svog brenne eleur Mat moết ɔf thêủa
organisations in Hong Kong are fully sccupied with their existing verk
which follows fairly narrowly defined

inoć requiremente laž, low by the parent ozgamiestions in

It would be difficult to adapt them tó a jolitical reporting role
without redrafting their terms of referande. X appreci...te that your
office is in a similar jonitiɔm. Although you may have had a limited
China-ustoking brief at one stage, policy questions now take up so much
of your time that I commot ves you being ɑbis to bake additional respon-
sibilities in the foreseeable future without faarvase ià staff.

We then toủa a eloss lock at the information now ailable to un from