Chinese have satisfied themselves that Mr. McBain is a criminal and
deserves to be deported they may well be entitled to confiscate his
property, though on the other hand I do not think that this in itself
need prevent our making a further protest. But it seems to me that if
our protest were on this basia alone it would add little to what Mr.
Davies has already said (Peking telegram No. 330, paragraph 2). The
Chinese would bring in the Moellers issue and we ought therefore to be
in a position to make a clear statement about this before raising the
matter again. Whether we are able to do this depends, as Mrs. Denza
says, on the nature of the link between Mr. McBain and Moellers. The
whole question of an official protest must therefore on these grounds
alone be shelved for the time being. I believe Mr. Laubert is reading
the Moellers papers in an attempt to get to the bottom of the matter.
Mr. Denson asked for this in fact in his telegram No. 330, paragraph 6.
5. To take now point (b) above. It seems to me that we
Preas ought not to encourage publicity about either case. reports would
rightly be critical of Chinese behaviour. The Chinese would inevitably
resent it; they might regard it as a poor reward for their attempts to
be forthcoming. It would introduce a sour note into our relations which
are otherwise improving, without our standing to gain anything, and it
could lead to speculation involving Moellers about which we may not be
in a position to speak. It would scarcely lead to the return of Mrs.
Martin's jewlry or any of their possessions. We could not of course
prevent Mrs. Martin herself publishing the facts of the matter
especially if the Chinese, as seems probable, attempt to wind up the
affair by declaring her property forfeit in the same terms that they
applied to Mr. McBain, but it would seem unwise for HMG to have a hand
in a public exposure of Chinese cupidity.
-
-
6. If one draws a distinction between very personal
on the one possessions jewelry, watches and medals hand, and general
household goods and chattels on the other hand, we may be able to
consider making a discreet
CONFIDENTIAL
/approach
CONFIDENTIAL
Reference...............
approach to the Chinese, as indeed Mr. Davies has already done à propos
of Mr. McBain's decorations, for the return of the personal treasures.
If we think this a reasonable request, we could obtain a list of Mrs.
Martin's jewels from her or her family here. But in any case, publicity
would achieve little.
7. I consider then that we must adopt the course proposed by Mr. Denson
in his telegram No. 4404 A draft reply is attached. After action we
ought to pursue our search for the facts of the Moellers-McBain
involvement, Since Mr. McBain himself has claimed to the Chinese that he
was Moellers' residual agent, I fear it may prove diffi- cult to
persuade them otherwise even if the papers inclined us to such a view.
PR
(P. J. Roberts) 18 June, 1970
I
afree
There is a
further factor. The
confiscation of his. McBain's property as
י
Compensation" for the Mrollers debt
eventually
"part
may
Und
to a private smit between für. McBain and Moellers. While nome of our
within so far has been of a kind nicely
во Лена во
becoming in volved in the suit leg. as a
prime
that Mrellen and employ ther. McBain), in mind that as for asporince
wttress la
it is worth bearing
we shared nor provonance in public in the correctness of the Mirain's
claim to be a Moellers employee
This does not affect nur present
present course of actor's, but it is a point which we might keep in mind
CONFIDENTIAL
порести поль
L
raft
heissnerd.
for. Lambert
to pursue y?
78.187
recordes.
CYPHER/CAT A
CONFIDENTIAL
TO FOREIGN AND COMMONWEALTH OFFICE
PRIORITY PEKING
TELEGRAM NO. 444
11 JUNE 1970
TOP COPY
CONFIDENTIAL.
ADDRESSED TO F C O TELEGRAM NUMBER 444 OF 11 JUNE R F I TO
HONG KONG
ANA
MY TELNO 441 OF 10 JUNĖ.
Miunk.
1
FEC 14/1
AT SAME INTERVIEW KUAN SAID THAT HE STIL HAD NO NEWS FROM
SHANGHAI ABOUT MRS MARTIN'S PROPERTY. HE HAD PASSED ON
OUR REQUESTS AND HE WAS CONFIDENT OF A REPLY SOON.
46.65
2. DAVIES THEN MENTIONED MCBAIN'S WAR MEDALS (HOWELLS' LETTER OF 14 MAY
TO APPLEYARD REFERS),
67
EMPHASISING THAT HE WAS SPEAKING PERSONALLY AND NOT AT THE REQUEST OF
MCBAIN. HE HOPED THE SHANGHAI AUTHORITIES WOULD CONSIDER RETURNING THE
THREE WAR MEDALS WHICH HAD NO VALUE EXCEPT TO MCBAIN. HE NAMED THEM BUT
SAID NOTHING ABOUT THE
O B E. KUAN UNDERTOOK TO PASS THE REQUEST TO THE SHANGHAI AUTHOR-
ITIES.
3. KUAN THEN SAID THAT IN REPLY TO CONSUL'S ENQUIRY AT INTER-
VIEW ON 7 MAY, HE NOW HAD A SUMMARY OF THE CHARGES AGAINST MCBAIN WHICH
HE WAS WILLING TO READ OUT. DAVIES AGREED AND
FOLLOWING IS A TRANSLATION:
HAS QUOTE MORAIN, UNDER COVER OF BEING A BRITISH MERCHANT, LONG CARRIED
OUT ESPIONAGE ACTIVITIES. HE HAS ALSO COMMITTED OFFENCES OF SMUGGLING
AND ILLEGAL DEALINGS IN FOREIGN EXCHANGE.
HE HAS NOT PAID THE FINES FOR THESE CRIMES, HE HAS ALSO HAD ILLICIT
RELATIONS WITH CHINESE WOMEN. THESE CRIMINAL
/ACTIVITIES
CONFIDENTIAL
CONFIDENTIAL
-2-
+
ACTIVITIES SERIOUSLY JEOPARDISE THE INTERESTS AND SOVEREIGNTY
OF THE CHINESE PEOPLE. IT HAS THEREFORE BEEN DECIDED TO DEPORT HIM
AND CONFISCATE HIS PROPERTY IN SHANGHAI TO COMPENSATE FOR THE
FINE WHICH MOLLERS OWE TO THE CHINESE GOVERNMENT FOR THEIR
OFFENCE OF ILLEGAL DEALINGS IN FOREIGN EXCHANGE, UNQUOTE,
J
4. KUAN EMPHASISED THAT SHANGHAI AUTHORITIES HAD FULL FACTS
NECESSARY TO SUPPORT CHARGES, DAVIES THANKED KUAN FOR THESE
DETAILS AND SAID HE DID NOT WISH TO DISCUSS FURTHER.
5. IT IS SURPRISING THAT CHINESE HAVE PROVIDED
THESE DETAILS, FAR-FETCHED THOUGH THE CHARGES APPEAR,
CHINESE WILLINGNESS TO SPECIFY THEM MAY REFLECT A NEW DESIRE
TO PRESENT A MORE REASONABLE IMAGE AND, SPECIFICALLY, TO
PUT RECORD STRAIGHT IN MCBAIN'S CASE, I SEE NO,
REPEAT NO, ADVANTAGE IN ALLOWING THEM TO BECOME PUBLIC AS
THIS MIGHT INVOLVE US OR MCBAIN AND HIS
RELATIVES IN AN ALTERCATION WITH THE CHINESE WHICH COULD
DO NOTHING BUT HARM. I HOPE THIS ADVICE MAY BE OFFERED OFFICIALLY
TO THE FAMILY.
MR. DENSON
FILES
F.E.D.
CONSULAR D. NAT. & TR. D. CLARIS D. LEG, ADVS.
CONFIDENTI AL
CONFIDENTIAL
Reference
6879
Mrs. Denza (Legal Advisers)
Miss Gutsell (Consular Department)
Mr. McBain's Property
5
You will see from Peking telegram No. 330 below that the Chinese have
confiscated Mr. McBain's property as "part compensation" for their claim
against Moellers, the firm for which Mr. McBain claims to have worked
while in China. It is difficult to understand why the Chinese should say
that they were taking over the property as part of their dispute with
Moellers, since presumably they are perfectly entitled in law to
confiscate the property of a private individual in respect of "crimes"
committed by him. But I presume that they are not justified in
confiscating private property as part of a dispute with a company of
which the person concerned is merely an employee. However, I should
welcome guidance on this point.
2.
Mr. Davies protested at the Chinese action during the interview. If, as
I suspect, the Chinese action is wholly unjustified we should perhaps
also consider whether in addition we ought not to put some kind of
formal protest on record in case we are accused later of having
acquiesced in the confiscation. Personally, I suggest that Mr. Davies'
protest is sufficient but I should welcome your views and those of
Consular Department
3. I have asked our registry to dig out the back papers on the Moellers
dispute with the Chinese Government. I know that this is an immensely
involved affair which is further complicated by the fact that Moellers
denied some time ago that Mr. McBain had anything to do with them or was
in their employ.
Lifpregad
(L. V. Appleyard) Far Eastern Department
11 May, 1970
that we should put a formal protect
on the word.
But
without knowing
we cannot prepon this
the the facts about th.
McBain is connection with Hollers and when Новат
it ceased. If there is no connection why
школов
воло
CONFIDENTIAL
M' Gain believe there was? If we constan
that there was meer any
beflain why
commerduin and
McBain thinks there was ther
them is no need to go into the Mollers
go
dispute or to make the point that the Chemise should have prounded
agained the
Company
im Lame wither
way.
I'M. Bain was
Company Chinias tan could
Lis
for
высот
employee of the coverably provide for Eligine of property by way of
compensation unsatisfied public dest. Not being tepert on Chimice law
Scould not answe прика
and pranmably
Areal hyal
this, and
independent
ane do not have an
Aking. Elim Dunge 1stay.
Lolemain in
İ
Enter.pr. 2015
CONFIDENTIAL
Reference.....
Far Eastern Department
7
+
I have not recorded previously that I saw both Mr. McBain and Mrs.
Kartin during my stay in Hong Kong between 9 - 17 April.
This
2. Soon after my arrival I telephoned to Mr. George McBain (Bill's
nephew) to say that I hoped to be able to come and call on Mr. McBain,
He replied that he thought it would be good for Hr. McBain to get out
(which he had not yet done) and we therefore arranged that he would call
on me at Government House. he did. Apart from being a little bit more
frail and a little bit shakier than when I last saw him in Shanghai in
1966, he was in not at all bad form. He spoke at length about his arreat
and period of detention. He had been able to identify where he was
detained (Nantao) because he was taken from there to the Ward Road jail
early on for a medical at the hospital. At some stage in his
interrogation he obviously collapsed because he came to, to find himself
in a bed back in the Ward Road police hospital This is when he was told
that he had been very ill and had had to have a blood transfusion. Mr.
McBain was quite convinced in his own mind that he had never Bigned any
document for the Chinese. He had denied being a spy, explained his
functions as the residual agents for Messrs. Moller and in answer to a
question about his O.B.2. said that he assumed that it was for the help
which he gave to various members of the British community. He said that
he very much hoped that he would be able to recover the personal effects
from his flat and mentioned amongst other things his medals. His nephew
intervened at that stage to say that with the help of the Political
Adviser they were negotiating with the Chargé d'Affaires Office in
Peking in the hope that the China Travel Service could act as agents, so
that all Mr. McBain's effects could be brought out of China.
13.
I
I
Mr. McBain said finally that one thing which had happened to him was
that his wrist watch had been removed and also, I believe, a signet
ring. I Baid that I was very surprised that personal belongings like
this had not been returned when he was eventually sent out. It was
unusual for the Chinese not to do this.
4.
I called on Mrs. Martin at the Mathilda Hospital where she is at present
living. Although she had lost a tremendous amount of weight and was very
frail she was also in incredibly good form and gabbled away about her
experiences. I don't think that anything which she said added much to
the accounts which I have seen of talks which she has had with members
of the Political Adviser's staff since her return, except on two pointe:
/(a)
CONFIDENTIAL
CONFIDENTIAL
İ
|
15.
(a) She explained that when she was brought down
by train to Canton she was lodged in the Yang Cheng Hotel. When she was
taken down to the dining room she was told that she was not to talk to
anybody else there. She said that she was unlikely to meet anybody she
knew and she had no intention of talking to strangers. To her
astonishment, however, in the middle of dinner she saw Mr. and Mrs.
Denson walk in, who did not recognise her but went to the opposite end
of the room from where she was sitting. She thought that Krs. Denson had
recognised her because more than once she looked round at her, but as
Mrs. Martin said, she probably was unable to identify her dressed in
Chinese clothes and with long unkempt hair. She told her watc-dog that
if the British Chargé d'Affaires came up to her she would have to speak
to him. This I need hardly say resulted in her being removed from the
room. Strangely enough Mrs. "artin had not told this to anyone else who
had seen her and I asked Mr. Denson in Peking if he remembered seeing
her. At this both he and Krs. Denson remembered seeing what looked like
a European woman in Chinese clothes but she had altered so much since
they had last seen her (only nine months previously) that the likeness
did not strike them fully.
(b)
Ma Martin said that she went into prison not only with a gold wedding
ring but also wearing a diamond ring. Both these, together with her!
watch and whatever other jewellery she may have had on are missing.
I am extremely surprised that the personal belongings (and valuable at
that), which Mr. KcBain and Mrs. Kartin had on have in effect been
stolen. This suggests either a breakdown in order pr deliberate theft. I
am almost certain in the case of Mr. Barrymaine that before leaving he
was handed back his personal belongings and I think that this was the
case with Mr. Grey. I think we should consider what action Both i should
be taken about these personal belongings.
Mr. McBain and Mrs. Kartin suggested that perhaps they had been deprived
of their personal belongings as a condition of their release. If so
neither of them was actually told this, and it sounds unlikely to me I
believe we should follow this point up, probably with the Consular
Department of the .F.A. in Peking in the first instance, but on this I
think we should seek Mr. Denson's advice. An alternative is that we
should raise the matter here in London on some suitable occasion, going
no further than to say that we were extremely surprised that these
valuable pieces of personal property had not been returned, thus perhaps
making it easier for the Chargé to send a report to Peking and if, in
fact, the belongings had been
/illegally
CONFIDENTIAL
!
:
!
CONFIDENTIAL
"Reference..
illegally removed but were still available in Chinese hands they could
be restored with the least possible loss of face.
6. One aspect of this problem which we should consider is publicity. If,
in fact, we ultimately learn that the belongings in effect had been a
tolen I see no reason why we should not give publicity to this. It would
help to destroy some of the myths about Chinese morals, but this is also
a matter on which Mr. Denson should be consulted.
MJ
(K.M. Wilford) 18 May. 1970
¡
few fell, at 65
69
Minute.
он... ль
1576
CONFIDENTIAL
CS. 41A
2600077
10,000-10/69-274235
F
Deen Lan
RESTRICTED
COLONIAL SECRETARIAT
LOWER ALBERT ROAD HONG KONG
Ender
14th May, 1970.
x 1
McBain's Property
I have passed to William McBain the information about his property in
Peking telegram No. 330 and have given him the gist in writing in case
he vishes to discuss the matter further with Mollers.
Material loss apart he much regrets the confiscation of his decorations:
a Military Cross, an Air Force Cross and a Croix d'Guerre with Palm all
awarded in the First World War. Might we be able to get replacements for
him? A possible complication is that he no longer has any record of his
entitlement to these medals.
The Croix d'Guerre of course is not strictly our business but I should
like to help on that too if possible. I have spoken to the French
Consulate-General who say that this should be raised with their Embassy
in London rather than here.
McBain did not mention his 0.B.E. as you know he partly ascribes his
misfortunes to it but perhaps ve could replace that too.
I am sorry to give you this trouble but if the lost medals could be
replaced it will give the old boy some compensatory pleasure to set
against his unhappy if confused recollection of recent months.
I have asked Honours Section
about this or they
PL
пори
ävešlýchz.
love
The OBF cam replaced, though
L.V. Appleyard, Esq.,
Far Eastern Department,
знемо
Chris
(C.J. Hovells)
Newsee
bin be
7
a t
Assistant Political Adviser.
J' MB. may have
to pranj
Foreign & Commonwealth Office,
LONDON, S.W.1.
c.c. H.L1. Davies, Esq.,
PEKING.
!
"PR
RESTRICTED
ho los by b
67
EN CLAIR
NG KONG TO FOREIGN AND COMMONWEALTH OFFICE
TELNO 42 TO PEKING 12 MAY 1970
HONG KONG
UNCLASSIFIED
TOP CO
REC
REG:
FECM/1
ADDRESSED TO PEKING TELNO 42 OF 12 MAY. REPEATED FOR INFORMATION TO FCO.
is
YOUR TELNO 330 TO FCO: MCBAIN'S PROPERTY
MCBAIN INFORMED.
SIR D. TRENCH
FILES
F.E.D. CONS. D.
QQQQQ
pla
66
[
EN CLAIR
+
PEKING TO FOREIGN AND COMMONWEALTH OFFICE
VILNO 330
UNCLASSIFIED
9 MAY 1970
iR
L
11 MAY 1970
EC 14
TOP COPY
ADDRESSED TO FCO TELNO 330 TO FOO. RFI TO HONG KONG.
MYTEL 187 AND HOWELL'S LETTER OF 22 APRIL.
MCBAIN'S PROPERTY.
WHEN CONSUL ENQUIRED ABOUT THIS MATTER ON 7 MAY KUAN REPLIED THAT
BECAUSE OF MCBAIN'S OFFENCES AGAINST CHINESE LAW, THE JUDICIAL SENTENCE
IMPOSED HAD BEEN THAT HIS PROPERTY BE CONFISCATED AS PART COMPENSATION
FOR THE CHINESE CLAIM AGAINST MOLLERS AND THAT MCBAIN HAD BEEN TOLD
THIS. IT WOULD HAVE SAVED TROUBLE IF WE HAD FIRST ESTABLISHED POSITION
FROM MCBAIN.
2. CONSUL SAID THAT HE WAS DISTURBED TO HEAR THIS. MCBAIN WAS VERY OLD,
REMEMBERED LITTLE OF HIS DETENTION AND HAD TOLD US NOTHING
OF CONFISCATION DECISION. CONSUL WOULD NOW CONVEY THIS NEWS TO HIM. HE
WAS SURE THE BRITISH GOV RNMENT WOULD MEANWHILE WISH HIM TO PROTEST, IT
WAS NOT CORRECT TO CONFISCATE PRIVATE PROPERTY
TO COMPENSATE FOR A COMPANY
DEBTS: OTHER METHODS SUCH AS THIRD
COUNTRY ARBITRATION.WERE AVAILABLE.
Invection another pp. Please put with
стар
3. KUAN REJECTED THE PROTEST ON STANDARD LINES. TO CONSULS QUESTION AS
TO WHETHER BASIS OF CONFISCATION WAS MCBAINS ALLEGED OFFENCES OR MOLLERS
DEBT, KUAN REPLIED THAT IT WAS MAINLY THE LATTER.
4. CONSUL ASKED FOR TRANSCRIPT OF TRIAL TO PASS TO MOLLERS
IN CASE THEY WISHED TO COMPENSATE MCBAIN. KUAN REPLIED THAT THIS SHOULD
BE RAISED WITH SHANGHAI AUTHORITIES. HE EMPHASISED THAT CONFISCATION
ONLY MET PART OF THE MOLLERS DEBT. I AM AFRAID
WE HAVE NO REAL HOPE OF OBTAINING TRANSCRIPT.
5. CONSUL ALSO ENQUIRED ABOUT MRS MARTIN'S PROPERTY AND KUAN REPLIED
THAT HE THOUGHT THE MATTER WOULD BE SPEEDILY RESOLVED AND A DECISION
CONVEYED EITHER TO MRS MARTIN OR TO HER AGENT IN SHANGHAI. HE WAS STILL
AWAITING INFORMATION FROM THE SHANGHAI AUTHORITIES. CONSUL ASKED KUAN TO
CONVEY TO SHANGHAI AUTHORITIES MRS MARTIN'S PARTICULAR CONCERN ABOUT HER
JEWELLERY. KUAN AGREED TO DO THIS.
CITIES/
/6.
25
-2-
6. CHINESE REACTION IS NOT UNEXPECTED AND I AM AFRAID THAT WE MAY
HAVE THE SAME ANSWER ABOUT MRS MARTIN'S PROPERTY.
7. CONSUL'S REMARKS IN LAST SENTENCE OF PARAGRAPH 2 WILL, 1 THINK, BE
TAKEN BY CHINESE AS AN EXPRESSION OF PERSONAL OPINION AND NOT
NECESSARILY AS CONSTITUTING H.M.G. OFFICIAL POSITION ON MOLLERS DISPUTE
ON THE DETAILS OF WHICH I AM NOT CLEAR. IN CASE THE CHINESE REVERT TO
THE MATTER, I SHOULD BE GRATEFUL FOR BACKGROUND.
MR. DENSON
FILES
CONSULAR D. F.E.D.
+
+
I HATE
Mr. Appleyar
Mr. Wilson
RESTRICTED
FEC 14/1
L4A
Reference.
+
Mrs. Martin's Effects
Mr. Jansen, a nephew of Mrs. Martin, telephoned me on 1 May. He
confirmed the substance of paragraphs 2 and 3 of Mr. Howell's letter of
22 April (folio 64 below) adding that in her letter to him Mrs, Martin
had explained that one reason for her reluctance to leave Hong Kong for
the time being was her concern for the welfare of her old servants in
Shanghai. She had requested the Hong Kong and Shanghai Bank to
investigate the possibility of paying them off.
2.
Further, she had asked Mr. Jansen to call on the Chinese Mission here
and seek assistance in arranging the recovery of her possessions in
Shanghai, I suggested to Kr. Jansen that he waits for a day or two
before doing this ideally, we ought first to establish for certain
whether or not Mrs. Martin's effects were confiscated
-
-p
and that in any case it might be preferable to raise the matter through
commercial channels (as Mr. Howells suggests). Mr. Jansen agreed to mark
time.
3. I suggest that we ask Peking to approach the MFA, on lines similar to
those followed in the case of Mr. McBain (see FCO telegram No. 71 of 3
March and Peking telegram No. 186 of 31 March), while suggesting to
Mr. Jansen at the same time he could go ahead and suggest to Mrs. Martin
that she ask the China International Travel Service in Shanghai to pack
her effects and ship them out. I attach a draft telegram to Peking.
(P. J. Roberts) 7 May, 1970
See
Suspert telegram:
Peking
I hon
wo. 330 out165
pardi 5~6 H, K, tel. no.35 to Reky
Jon 14
"Y
RESTRICTED
NOTHING TO BE WRITTEN IN THIS MARGIN
Registry No.
DEPARTMENT FED
SECURITY CLASSIFICATION
Top Secret
Secret
Confidencial
Restricted
Unclassified
PRIORITY MARKINGS
Flash
Immediate
Priority Routine
}
Date and time (G.M.T.) telegram should
reach addressee(s)
(Date)
------
Despatched
I
PRIVACY MARKING
In Confidence
En Clair. Code Cypher
Draft Telegram to:-
Peking
No.
(Date)
And to:-
[Security classification
[Security_ if any
"]
]
[ Privacy marking
-if any
[Codetoord-if any]
Addressed to
telegram No....
And to
D
repeated for information fto
LIN-LI
Repeat to:-
Hong Kong
Saving to:-
Distribution:-
Copies to:-
Saving to
1-
ANNI
Th
Superio
Ir
PEKING
(date)
2. 12.
HONG KONG
-----|--- TNT-~~-~‒‒ırrım ------ IKASI KA
ויויו
➖➖➖➖LILLI
2-------IL-J· LJILI
DIYAH MAA
Howell's letter of 22 April to Davies:
Mrs. Martin's effects.
As in the case of McBain, we should like you,
at an appropriate moment, to seek the MFA's advice on the recovery of
Mrs. Martin's effects from
Shanghai, in the hope more of establishing whether
ostaining they have been confiscated than of asking real
assistance. We are at the same time suggesting to
Mrs. Martin's nephew here (who had been asked by his
aunt to approach Portland Place) that he or she
should appoint CITS in Shanghai to act on her behalf.
RESTRICTE D
CYPHER/CAT.A
HONG KONG
TO FOREIGN AND COMMONWEALTH OFFICE
No comments yet.
Private notes are available after approval.