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LINES YOU FEAR, SPECULATION IS BOUND TO ARISE FROM MR ROYLE'S VISIT IN
ANY CASE AND I WOULD DOUBT WHETHER DENSON'S PRESENCE (SUBJECT TO HIS
VIEWS) WOULD MAKE IT VERY MUCH WORSE. 2. THE QUESTION, I THINK, REALLY
TURNS ON HOW IMPORTANT MR ROYLE FEELS IT TO BE TO SEE HIM HERE. IF IT IS
IMPORTANT, WE

CAN WEAR THE RESULT.

(FCO PLEASE PASS PRIORITY PEKING)

P

SIR D.TRENCH

FILES

F.E.D.

H.K.D.

P.S. TO MR. ROYLE

SIR L.MONSON

MR. WILFORD

+

+

[REPEATED AS

REQUESTED)

4

1

'CONFIDENTIAL

Ple

D

CYPHER/CAT A,

CONFIDENTIAL

PRIORITY FOREIGN AND COMMONWEALTH OFFICE

RÂM NUMBER 363

CONFIDENTIAL.

peor

TO PEKING.

11 SEPTEMBER 1973. (FED)

FEAT 2/1

ADDRESSED TO PEKING TELEGRAM NUMBER 303 OF 11 SEPTEMBER AND TO HONG

KONG.

YOUR TELEGRAM NUMBER 578.

FOLLOWING FROM WILFORD.

&

I HAVE DISCUSSED THIS WITH MR. ROYLE. WE WOULD LIKE BOTH YOU AND

THE GOVERNOR TO RECONSIDER WHETHER IT IS WISE FOR YOU TO COME TO

HONG KONG DURING MR. ROYLE'S STAY. THIS IS THE FIRST OFFICIAL VISIT

WHICH MR. ROYLE HAS PAID TO THE COLONY AND HIS PURPOSE IS TO HAVE

DISCUSSIONS WITH THE GOVERNOR ON INTERNAL QUESTIONS.

INEVITABLY IF YOU ARE PRESENT AS WELL, EVEN IF ONLY FOR PART OF THE

VISIT, THERE WILL BE SPECULATION THAT ONE OF THE OBJECTIVES OF HIS

VISIT IS TO CONSIDER HONG KONG'S RELATIONS WITH CHINA, THE SITUATION

OF THE CONVICTED PRISONERS AND SO ON. IS THERE NOT A RISK THAT THIS

WILL LEAD TO EXPECTATION OF A MOVE ON THE PRISONERS

AND TO PEOPLE IN PEKING EXPECTING YOU TO RETURN WITH FRESH

INSTRUCTIONS?

1

2. IF ON FURTHER RECONSIDERATION BOTH YOU AND THE GOVERNOR THINK

WE ARE BEING UNNECESSARILY APPREHENSIVE, MR. ROYLE WOULD, OF COURSE

BE GLAD TO SEE YOU AND THE NECESSARY FINANCIAL AUTHORITY FOR YOUR

JOURNEY IS ASSURED.

DOUGLAS HOME

FILE S

F.E.D.

K.K.D.

P.S. TO MR. ROYLE

SİR 1. muRSON

MM. WILFORD

CONFIDENTIAL

10

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Registry No.

DEPARTMENT

SECURITY CLASSIFICATION PRIORITY MARKINGS

Emergency)•

Confidential Kertamed

Immediacej

Priority Kousine

• Date and time (G.M.T.) telegram should

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12/9/

(Date)

Despatched

X

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Draft Telegram 10:-,

No.....

(Date)

FRKING

And to:-

303

Security classification

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-If any

[Codeword-if any]

Addressed to PEKING

HONG KONG

telegram No.

19

And to

CONFIDENTIAL

repeated for information to.. HONGN

(date)....

11 Sept

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NOTHING TO BE WRITTEN IN THIS MARGIN

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Saving to:-

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first.

Distribution:

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P.SKM. Royle Sit. Memor

11/9/1/0

Copies to:-

Miliyas

EXAMINEEXI

Saving to:

.. LUI.

578

Your telegram No. 594.

Following from Wilford.

I have discussed this with Mr. Royle. We

would like both you and the Governor to

reconsider whether it is wise for you to come to

Hong Kong during Mr. Royle's stay.

This is the

first official visit which Mr. Royle has paid to

the Colony and his purpose is to have discussions

with the Governor on internal questions.

Inevitably if you are present as well, even if

only for part of the visit, there will be

speculation that one of the objectives of his visit

is to consider Hong Kong's relations with China,

the situation of the convicted prisoners and so on.

Is there not a risk that this will lead estime to

expectation of a move on the prisoners which Chr

matérsky diet people

expecting

in Peking

instructions?

espect you to return with fresh

/2.

CONFIDENTIAL

[

CONFIDENTIAL

2. If on further reconsideration both you and the Governor

think we are being unnecessarily apprehensive, Mr. Royle would,

of course, be glad to see you and the necessary financial

authority for your journey is assured.

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(03847) (2) 300 HEALS NE

CONFIDENTIAL

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

Mr Royle

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M. Gyford

Discussed with the Royle whe

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Please see Peking telegram No. 578 addressed by Mr. Denson to

There will be no difficulty in obtaining the necessary authority from
the Administration for Mr. Denson to make this journey. However, before
replying, I wonder if we ought not to think perhaps for a moment about
the desirability of Mr. Denson being in Hong Kong at the same time as
you are. On this occasion you wish to concentrate your activities on
internal affairs in Hong Kong and this will no doubt be the gist of what
you will say publicly on arrival and of any briefing you may give once
in Hong Kong. If, however, Mr. Denson appears at the same time as you
are in the Colony there is some danger at least that the press will say
that his presence at the same time as yours means that matters connected
with China, or possibly the release of convicted prisoners is under
discussion. This would be a pity. I wonder therefore whether you would
like to re-consider the question whether Mr. Denson should come to Hong
Kong at the time he proposes.

2. A subsidiary argument but one which we should, I think, consider is
that you will not have all that amount of time available in Hong Kong
and you may not be able to spare much for extraneous matters. Mr. Denson
has only just been through Hong Kong himself so I doubt if he is in need
either of R. and R. or an excuse to do some shopping. I have mentioned
this matter also to Sir L. Monson and you may like to add this to the
agenda of the talk on Hong Kong which should have taken place today but
which I understand may take place tomorrow.

Km Kun hiffo

(K.M. Wilford)

9 September. 1970

Tel sent

Muis

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CONFIDENTIAL

CONFIDENTIAL

TOP COPY

CYPHER/CAT A

PRIORITY PEKING

TELEGRAM NUMBER 578

TO FOREIGN AND COMMONWEALTH OFFICE

8 SEPTEMBER 1970

CONFIDENTIAL.

ADDRESSED TO F C O TELEGRAM NUMBER 578 OF 8 SEPTEMBER R F I

GOVERNOR HONG KONG.

FOR WILFORD.

FEET 2/1

L

WHEN I SAW MR. ROYLE IN LONDON HE SAID IT MIGHT BE USEFUL IF I

HAD A TALK WITH HIM WHILE HE WAS IN HONG KONG. I WOULD ACCORDINGLY

PROPOSE TO ARRIVE IN HONG KONG ON 11 OCTOBER AND LEAVE

FOR CANTON ON 14 OCTOBER IN TIME TO ATTEND OPENING OF CANTON

TRADE FAIR ON THE FOLLOWING DAY, GOVERNOR OF HONG KONG WITH WHOM

I HAVE DISCUSSED THESE PLANS SEES NO OBJECTION. GRATEFUL FOR

AUTHORITY FOR JOURNEY.

MR. DENSON.

FILES

F.E.D.

H.K.D.

PERS, OPS.D.

P.S. TO MR. ROYLE.

MR. WILFORD

CONFIDENTIAL

8

L

5

SA

CONFIDENTIAL

2877

Reference

Mr. Morgan,

Far eastern Department

Sino-British Relations

Mr. Maddocks has kindly sent me a copy of his letter to you of 12 June
on Sino-British relations.

2. You will not be surprised to learn that I find it unconvincing, for
reasons set out in part in my minute of 25 March to Mr. Murray (copy
attached). I shall not add to that except to say:

3.

(a) Mr. Maddocks should give more thought to

the future: on the one hand the declining importance and increasing
embarrassment) of Hong Kong; on the other the increasing importance of
China.

(b) As for the present, if we are to take a

hard look at the Peking/Hong Kong/London triangle, let us not overlook
Hong Kong. What does H.M.G. gain from Hong Kong' would be interesting to
see a balance sheet.

If there are to be any general discussions on the future of Sino-British
relations, I hope that Planning Staff will be given a chance to attend.

It

M

Handach

(P. Cradock) Planning Staff 3 July, 1970

Copy of submisini ₤37

sent to Me Carlock.

Mk

waish

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CONFIDENTIAL

SECRET

COVERING TOP SECRET

Flag A

SA

Mr. Wilford

Enter a resubmit pl. матиз

HONG KONG AND SINO-BRITISH RELATIONS

Mr. Maddocks will be in the Office on 6 and 7 July and

One of the

is booked provisionally to see you on 7 July.

subjects he will wish to discuss is the place of Hong Kong

within the broader context of Sino-British relations. In

anticipation of his discussions Mr. Maddocks has written

expressing considerable misgivings about what he sees as our

policy of bartering material interests in Hong Kong against

unreliable and ephemeral expressions of goodwill from the

Chinese.

2.

Mr. Maddocks' views appear to derive from a difference

of view on the basic aims of our policy. Since the comments

in Mr. Laddocks' letter underly some of the telegraphing from

Hong Kong (though in a more extreme form), it is important

that Mr. Haddocks should be reassured that we are under no

illusions about the extent to which Sino-British relations

can be improved, that we shall continue to pay due heed to

the substantial real interests in Hong Kong, and that our

policy is based on hard-headed calculation and not on wishful

thinking. Most of the points raised by Kr. Maddocks have

already been discussed at length, but I have some general

commenta on his letter.

Sino-British Relations

3. No-one here is under any illusions that in the foreseeable

future we can expect to

SECRET

COVERING TOP SECRET

/ China,

SECRET

COVERING TOF SECRET

4

given the present Chinese leadership and its likely

successors. There are too many deep-rooted obstacles:

history, competing ideologies, our close links with the United

States, our votes on the China seat in the United Nations and

our views on the status of Taiwan. These impediments will

persist even if the short-term problem of British subjects

is resolved.

The most we can aim for in the long term is a

sufficiently well founded

to ensure that temporary incidents (e.g. events in Hong Kong)

do not have a significant lasting effect on relations and are

dealt with in a reasonable fashion on the basis of our mutual

In the short term we can hope for an atmosphere,

interests.

in which problems like British subjects or potential disagreements

can be settled sensibly. In addition of course we want our

trade to continue to expand on a sound commercial basis without

discrimination against our traders on political grounds.

These are very limited objectives, based on a calculation of

the possibilities and, we consider, within our reach without

the sacrifice of real interests.

Commercial Relations

Li We should agree with much of what Er. Haddocks says in

paragraph 4 of his letter. We do not expect our trade with

China to outstrip our exports to markets in Europe or under-

developed countries. It will always be a small proportion of

overall British trade.

But the level of business continues to

Given that we are not

rise and the balance is in our favour,

bargaining away our interests elsewhere, and that the trade is

SECRET COVERING TOP SECRET

2

/ conducted

SECRET

COVERING TUF SECRET

conducted on a strictly commercial basis, there is every

reason to work for further improvement.

The Flace of Hong Kong

5. The crux of Kr. Maddocks' case is that we are too ready to

make concessions in Hong Kong in the search for a will-o'-the-

wisp improvement in Sino-British relations.

Flag B

6. T།

beyond any doubt that

TO APITTE- of "Hong

has shown

We can put

Similarly if an extension of the lease in

1997 is out of the question sooner or later, and possibly

long before 1997, we shall have to come to a settlement with

the Chinese over Hong Kong. This is bound to be painful.

The most we can hope for is an underly

on terms

consistent with our moral obligations to the inhabitants and

One unlikely to bring

pervane on this country.

This presupposes a considerable degree of Chinese restraint

and moderation.

term interests of Hong Kong itself that Sino-British and

It follows therefore that it is in the long-

Sino-Hong Kong relations should at least be sufficiently smooth

that we can enter into informal talks with the Chinese on this

problem with a reasonable chance of success.

7. In the short term it is scarcely necessary to re-emphasise

the need for satisfactory Sino-Hong Kong relations to preserve

the smooth running of the Colony. Accordingly we must

continually strike a delicate balance between maintaining con-

fidence in our determination and ability to preserve our

/position

SECRET COVERING TOP SECRET

3 -

SECRET

COVELLING TOP SECRET

position in the Colony, and the long and short-term

necessity to preserve sound relations between Hong Kong and

China. This means that while we should, and indeed do, pay

close attention t

Hong Kong by

showing that we are prepared wher▼ Hevesosiy

pressure, we should pay equal attention to removing irritants

in relations with China where this is possible. This entails

a hard look at the practical possibilities available to us, and

more particularly at the question of confrontation prisoners.

No purpose will be served simply by ignoring the problem, even

if the Chinese would allow us to do so. Given the oft-repeated

Chirme statement that

as much

relations.

we must at least continue to examine the problem

We may still conclude, as Mr. Maddocks suggests,

that there is little leeway for action; but this is no reason

for not taking up the issue, particularly as the local

Communists show no sign of wishing to resume ther campaign of

violence and the success of the Hong Kong Government in preserving

order becomes clearer and clearer with the passage of time. In

any case we cannot shelve the problem of confrontation prisoners

for four years, as Mr. Maddocke suggests, since we shall have to

decide during next year whether we wish to recommend the Governor

to

8.

A further point is that of timing.

relations with the Chinese are fleeting.

Moment of "good"

They are clearly

/ under

SECRET

COVERING TOP SECRET

-

SEORET COVERING TOP SECRET

under instructions to ensure that difficulties should not

be raised at present.

We should ensure that we are not

losing a good occasion for extracting benefits from them at

a lower cost than might be required at other times.

9. Mr. Maddocks touches briefly on the problem of maintaining

confidence between Whitehall and the Hong Kong Government.

This is one of the questions which Hong Kong Department

is keeping under constant review.

Copy to:

SALMorgen

(J. A. L. Morgan)

3 July, 1970

Clearly we have failed abyssually

Maddocks as the god Atte what

China is

that

Yr. Laird, Hong Kong Dept.

Mr. Cradock, Planning Staff

SECRET

+

стина м

our policy towwwt?

we have any but this most

COVERING TOP SECRET

5-

evil

Hong Kong. I find this very

Saud

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but weshall have

Nying

Joubt if S

inpress.

sall matie aand

m M' Madducks Forrow.

(ictor)

did they boat. He

did not exclude the idea of

using the 'exemplary'

play of which he sawd 17x

had never thought.

Pl. Discus

OS. DA

2600077

10,000-3/70-874512

SCR.4/3571/68

CONFIDENTIAL

COLONIAL SECRETARIAT

LOWER ALBERT ROAD HONG KENE

SA

Dear John,

Sino/British Relations

12th June, 1970.

pla may

I

ба

EC

Thank you for your letter FEC.3/548/2 of 2 June. look forward to
discussing this large subject with you in a fev veeks' time.

2. You will find that, having been here 2 years, I have become a strong
advocate of the Hong Kong point of viev. find myself out of sympathy
with the argument which starts from the assumption that the UK's
political and economic relations with China are capable of substantial
improvement and goes on to conclude that it is possible and wise to make
some concessions in Hong Kong to achieve those purposes.

3. I find it difficult to take very seriously the prospects of a
substantial improvement in political relations between UK and China. Our
inheritance from the last century, the extraordinary dogmatic nature of
the Chinese regime, the probable continuation of irritations and
problems in Hong Kong and the relative decline of our pover in the world
set narrow limits to the scope for improvement. The present discounted
value of our political prospects in China seems to me to be almost zero.
If we stay as we are, ve shall not do too badly.

4. The economic outlook seems hardly better. Although ve know very
little about the Chinese economy, it seems likely that her rate of
economic growth is very small indeed. Dramatic changes in the total
volume of her external trade are not to be expected. The present volume
of Ur/China trade is low in terms of the UK's trade. It is of importance
to a number of firms and pressure groups, but it does not seem to me to
make good commercial sense to concentrate much effort or hope on trade
with China. The lesson ve have reluctantly learned in the '50s and '60s
is that the industrialised countries of the world show the really
dramatic increases in trade openings for Britain. We want to do our best
in trading also with the

}

J.A.L.Morgan, Esq.,

F.C.O.

c.c. J. Allan, Esq., Peking.

P. Cradock, Esq., FCO.

CONFIDENTIAL

/under-developed

CS. 41A

2600077

18,000-3/70-374312

SCR.4/3571/62

CONFIDENTIAL

COLONIAL SECRETARIAT

LOWER ALBERT ROAD

HONG HONG

page 2.

under-developed world including China but the real pickings are not
there.

5. Of course I accept that ve would be well advised to improve political
and commercial relations with China if ve can. I am simply arguing that
we ought to make a very cool, realistic judgement of the probabilities,
especially if there is a price to be paid for the chance of obtaining
these benefits.

On the other side of the equation I should like to emphasise the
difficulties of making concessions in Hong Kong. First of all it is a
matter of opinion whether making concessions is a sensible way to deal
with the Peking Government. Secondly there is the particular question
whether a concession can be made. If one looks towards the confrontation
prisoners in Stanley and Laichikok the Hong Kong viev is that it cannot.
The subject was examined ad nauseam during Grey's detention, There is
nothing new to say. I think it would be best to accept that there is no

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