fco-21-93-foreign-including-british-banks-and-problem-of-staffing — Page 12

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The report of Donald Hopson's talk with Lo Kusi-po unfortunately
suggests that we are no nearer to any solution to the problems of the
bank staff or indeed anyone elso. without going into details about the
latest exchange, we have warned the bank not to expect progress on
ŝelf's exit visa in the immediate future.

5.

I am copying this letter to Anthony Elliott in "ong Kong.

!

P. Cradock Esq., C.N.G....

PRKING.

пе

(J. B. Denson)

__CONFIDENTAL

BENCIE KELMA

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry Fes 14

SECURITY CLASSIFICATION

Top Secret.

Secret

Confidential

Restricted.

Unclassified.

PRIVACY MARKING

In Condence

66.

DRAFT LETTER

Typy 1 +

To:

From

P. Cradock, C.M.G. PEKING.

J.B. Dengon

Telephone No. & Ba,

Department

Copy to:

T.A.K. Elliott,

Hong Kong.

Political Adviser

Withour going

nito Derml's/

peteret me į

Thank you for your letter PEK/1 of

26 February 15/which you reported the impressions

member of the

of a French Embassy official who recently

visited Shanghai.

ghai.

2. We have informed the banks of the general

people

situatigh of their on without giving the

hon wi

source/of our information.

3. When we contested the Chartered Bank

when we spate to them

they confirmed that they had now obtained Mr.

Cummings' passport and so were in a position

tó apply formally for a visa for him. They

have decided, however, that for the time being

no application will be put in. They will

inform us when they contemplate further action. Lafor The repor

The report of Bosind Hipsme talk with Your fatest telegrama suggest that
we Lo Vudetto unfortunakin sugu but wer

are no dearer) any solution to the problems of

rerLie

Anyone alsu

the bank staff or indeed of the Mission,

have warned the bank that we de not) expect

progress on

immediate future.

lavors exerlange 5.

Self's exit visa in the

5. I am copying this letter to Anthony

Elliott in Hong Kong.

Me

"=

|

May

Gu

66

F2674

COVERING CONFIDENTIAL

Reference..

WI ------

Mr. Denso)

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Please see Mr. Cradock's

1. MAR

Ait เป

FCB/4

ber of

26 February to you about the morale of the staff of the banks in
Shanghai. I have contacted the banks as you requested and attach a short
draft reply from you to Mr. Cradock.

Schadland

(E.J. Sharland) 8 March, 1968

LAST

REF.

NEXT

KEF.

64 66

Ed (1426)

COVERING CONFIDENTIAL

5 Copy to boundar

(PEK/1)

+) Lati

Dear Joher,

CONFIDENTIAL

4/3

The Sharians Consular Department

·Show see. You mony atto

office of the British in to Speak

Chargé d'Affaires,

PEKING,

26 February, 1968.

malw

Perma to th Brinks-

A member of the French Embassy visited Shanghai recently and on his
return provided our first news for some time of the situation in the
British Bank community there.

2. He reported that they are generally quite confortable: meat is short
and heating in foreigners' buildings is limited to twelve hours a day,
but otherwise they have few material difficulties. Their spirits,
however, are not high and the wives in particular are tense and more
than a little hysterical. The Hong Kong and Shanghai Bank situation, in
which there have been two managers since last June sharing a house and
even an office desk, seems to be particularly unhappy.

3.

None of this is surprising. Their circumstances are distinctly worse
than our own. Shanghai, which is lese pleasant than Peking in the first
place, is still in a fair state of ferment; the foreign community is
minute and the atmosphere much more oppressive; and because we have no
confidential channel of communication with them they have very little
idea of developments. It makes it all the more urgent that we should
find a solution to their problema,

I am copying this letter to Anthony Elliott in Hong Kong.

Yours wer

livey

(P. CRADOCK)

J. B. Denson, Esq., O.B.E.,

Far Eastern Department.

LASI

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CONFIDENTIAL

REAL

646 (+65)

(FC 5/4)

CONFIDENTIAL

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A. C. 26/2

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FOREIGN OFFICE, S.V.1.

26 February, 1968.

Thank you for your letter of 12 February about the problems of the
British Banks in Shanghai.

2.

We have confirmed that the Banks are still planning on different lines,
the Chartered Bank intending to continue in business in Shanghai and the
Hongkong Bank considering the closure of their office there when
conditions permit. Both Banks have agreed to keep in close touch with
us, and with each other. Each is already aware of the other'■ position.

3. The Hongkong Bank are at present undecided about their ultimate
position on closure. Their first concern is to get Self out of China,
and they would then review the situation. Their London office are
enquiring from Head Office in Hong Kong whether they still want
Robertson to go to Shanghai. Until we hear from them again, please do
not press further for a visa for Robertson.

The Chartered Bank remain anxious to obtain a visa for Cummings. They
have obtained application forms from the Chinese Office here, which
Cummings has now completed. As soon as his passport arrives from
Amritsar the application will be formally submitted. We have explained
to them that even when the Chinese intend to issue visas there can be
considerable delay, so they will not necessarily expect any action from
us to back them up until a month or more after they have submitted the
application. They will let us know as soon as they have done so.

5. There is thus no immediate question of pressing for Cummings' visa
while ignoring Robertson's. I appreciate that such action could raise
Chinese suspicions about the Hongkong Bank's long-term intentions, but
consider it more likely that they would regard the lack of thrust behind
Robertson's appli- cation as resulting from their failure to grant an
exit visa for Self. I should be grateful, however, for your estimate of
how serious would be the risk of adverse Chinese reactions should we
press for an entry visa for Cummings while ignoring that for Robertson,
and whether these would, in any oiroum- stances, be sufficient to make
it necessary to consider declining to assist the Chartered Bank in
Cummings' case.

6. I am sending a copy of this letter to Anthony Elliott in Hong Jong.

P. Cradock, Esq., C.M.G.,

Peking.

(J. B. Denson)

CONFIDENTIAL

p.a.

Ed (1636)

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Flag A

621

I

Kr. Denson

CONFIDENTIAL

Reference.....

FC5/4.0 62.

Please see Mr. Cradock's letter of

12 February.

2.

I have discussed their positions with the two Banks. The Chartered Bank
are anxious to obtain an entry visa for Cummings, but the Hongkong Bank
(whose Head Office is, of course, in Hongkong) are undecided about their
position. Mr. Stewart, to whom I spoke, confirmed that they wish to
treat the two questions of Self's exit visa and the Bank's closure
separately, but was uncertain that closure was now the ultimate aim. He
will contact his Head Office and let us know. Meanwhile we should not
press for Robertson's entry visa.

3. I attach a draft letter explaining the position to Peking, and
seeking their estimation of the danger of Chinese hostility towards the
Hongkong Bank should we press for an entry visa for Cummings while
allowing Robertson's applica- tion to remain dormant.

F Mhailand

(E. J. Sharland) 23 February, 1968

2012

CONFIDENTIAL

Pa

Enter

CONFIDENTIAL

Please speak

62

49.

bean Johar,

Office of the British Charge

d'Affaires,

No 31

Peking.

► Lb 1968

TOP

Feb14

бо

Mir Sharland

12 February, 1968. We gestu.

Thank you for your letter FC 5/4 of 23 January about the Chartered
Bank's plans for replacing David Johnston in Shanghai

2. We are slightly concerned at the fact that the two British banks
operating in Shanghai are planning on entirely different lines, i.e.
that the Hong Kong and Shanghai Bank have stated their intention of
closing down their Shanghai branch as soon as the moment seems ripe
(your telegram No. 1003 of 22 November), while the Chartered Bank
according to your letter wish to continue in business there. There are
may mbalasanit be further difficult negotiations ahead before we obtain
the release (and, where appropriate, the replacement) of the bank
personnel now in Shanghai, and it would strengthen our arm and theirs if
they were able to present a common policy and a united front. Both banks
no doubt have good reasons for their decisions. But I think it essential
for us to make sure that at least each bank is aware of the other's
decision and that they keep in close touch about subsequent developments
with each other as well as with H.M.G.

3. One example of the kind of situation where this would help is that we
may in due course have to press for an entry visa for Cummings of the
Chartered Bank to replace Johnston. If so, we ought preferably to have
decided with the Hong Kong and Shanghai Bank whether or not we should
press simultaneously for an entry visa for Robertson, whose application
for a visa to relieve Crozier has been outstanding since December, 1966.
To agitate about Cumminge while making no mention of Robertson might
conceivably raise suspicions in the minds of the Chinese about the Hong
Kong and Shanghai Bank's intentions.

I am sending a copy of this letter, with one of yours, to Anthony
Elliott in Hong Kong.

J. B. Denson, Esq., 0.B.E.

Far Eastern Department,

Foreign Office,

London 5.W.1.

Yours wer

Aven

(P. Cradock)

CONFIDENTIAL

UNCLASSIFIED

Far Eastern Department,

Foreign Office, S.W.1.

With the compliments of

THE OFFICE OF

THE BRITISH CHARGÉ D'AFFAIRES

The Sharlen ідейну

p:༤. op.c

PEKING

24 January, 1968

ساده

e. Wil

(This Note was delivered to MFA on

the day after Mr. Cradock's interview with Consular Dept., :. e. 25
January

of.).

RECEIVED IN

*VES No 31

F28/4

The office of the British Chargé d'Affaires present

their compliments to the Consular Department of the Ministry

of Foreign Affairs of the People's Republic of China, and

have the honour to refer to the case of Mr. D. N. H. 8elf,

Manager of the Shanghai branch of the Hong Kong and Shanghai

Banking Corporation. Kr. Self's application for a visa

to leave China, submitted on the 17th of May, 1967, and

his wife's similar application, which ma last submitted

on the 21st of August, 1967, have not yet been granted,

despite the fact that Kr, 8elf's successor arrived in

Shanghai in June,

Er. Higuch, the Deputy Director of the West European

Department of the Ministry, said at a meeting with the

British Chargé d'Affaires on the 27th of November, 1967,

that he would enquire about the case of Ir, and Mira, Belf.

The Office would be grateful to know if the Hinistry are

yet able to inform them of the situation with regard to

Mr. and Mrs. Self'e sxit visas.

The Office of the British Chargé d'Affaires avail

themselves of this apportmity to renew to Consular Departaent

of the Ministry of Foreign Affairs of the People's Republic

of China the assurance of their highest consideration.

The Office of the British Chargé d'Affaires,

PRKINO.

24 January, 1968.

(FC 5/4)

CONFIDENTIAL

FOREIGN OFFICE, S.W.1.

23 January, 1968.

Go

CHARTERED BANK: SHANGHAI

Thank you for your letter PEK/1 of ↳ January about the difficulties
being encountered by the Chartered Bank over obtaining an entry visa for
a replacement for David Johnston.

have informed the Bank of your action and explained that we are delaying
the issue of visas to staff of the Bank of China who are due to come to
London. We also warned them that, even if Cummings manages to take over
in Shanghai, there is no guarantee that the Chinese would allow Johnston
to leave. The Bank's view is that, since they wish to continue in
business in Shanghai, they have no option but to try to proceed with the
change-over as planned. They will accordingly apply for an entry visa
for Cunnings in London if your démarche produces no result in Peking or
Indía, If the visa is granted they will apply for an exit visa for David
Johnston, to be effective a few days after Cummings' arrival in
Shanghai. will keep you informed of any developments.

We

P. Cradock, Esq., C.M.G.,

PERING.

(J. B. Denson) Far Eastern Department

CUAFIDENTIAL

234,

Desp. in Regy 2311/0

Paffey,

WOOL SUNR

NOTHING TO BE WRITTEN IN THIS MAPZIN

CONFIDENTIAL

60

Registry TO.

3 5/4

DRAFT

Letter

Type 1+

SECURITY CLASSIFICATION

To:-

Top Secret

Secret.

P. Cradock Esq., C.M.G., Peking.

From

J. B. Denson

Telephone No. & Ext.

Con l'ential EJS

Restricted.

19/1

Unclassifed.

VACY MARKING

Flag A

THE 724.

Department

F.E.

CHARTERED BANK: SHANGHAI

Thank you for your letter FEE/1 of 4

Januar: about the difficulties being encountered

by the Chartered Bank over obtaining an entry

visa for a replacement for David Johnston.

2.

mformið

We have not

the Bank kapa-end

your actioptin-suspert of their offert

store bike we explained that we are delay-

ing the issue of visas to staff of the Bank of

come to /

China * -** due to take

Lond. sared them that, even 1o

بہت

Cummings manges to take over in Shanghai, there

is no guarantee that the Chinese would allow

Mr. Johnston to leave. The Bank's view is that,

since they wish to continue in business in

Shanghai, they have no option but to try to

procee

1

accord Hagley

will apply

the change-over as planned. They

ar entry visa for

Cummings

result

:.produces no

London if your

in Peking or Indie,

The visa is granted tray wit

for an

exit visa for David Johnston, to be effective

a fer days after Cummings' arrival in Shanghr

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ནནྡ

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Kr. Dersoní

Reference...

Fch 42

2.

CHARTERED BANK: SHANGHAI

Please see Mr. Cradock's letter of 4 January.

I have spoken to Mr. Arthur of the Chartered Bank and attach a
self-explanatory reply from you to Mr. Cradock.

Esthailand

(E. J. Sharland 19 January, 1968

Draft Yo issue.

вс

fun

227;

PEK/

Lecar Johor,

RESTRICTED

Enter.

Office of the British Chargé d'Affaires,

PEKING.

4 January, #5GBIVED IN

ARCHIVES N➜.31

1 8 JAN 1953

FC6/4

I enclose a copy of a letter we have received from David Johnston, the
Chartered Bank Manager in Shanghai, about his successor's difficulties
in obtaining an entry visa. We have passed his request on to the Foreign
Ministry in a Note, but not surprisingly have not yet: received a reply.

59

2. There seems nothing more to be done at the moment: it is most
unlikely that the Chinese will react to this or to the Hong Kong and
Shanghai Bank's applications for visas until our quarrel with them about
diplomatic exit visas is resolved. If you are not already in touch with
the Chartered Bank in London, you might like to consider doing-ee-and
warning them about the difficulties that may arise over the proposed
change-over.

neem

Yam

lincy

J. B. Denson, Esq., 0.B.E.,

Far Eastern Department.

(P. CRADOCK)

Mr. Sharland

This crossed 4.0. relegiam

No. 38 about visas for the

Bank of China. Please

Quran @

bo

24

Speaks to

me

Chartered

Bank.

o dragy reply.

المعاملات

1

Fes/u.w(59)

COPY

No. 203

13th December, 1967.

Office of the British Chargé d'Affaires,

5, Kuang Hua Lu,

Peking.

Dear Sire,

We wish to advise you that it has been arranged for Mr. D. C. Johnston
to be relieved of his duties as manager of The Chartered Bank, Shanghai
about July next year. His relier, Mr. R. E. Cannings is at present in
Amritsar and applied on 6th October to the Chinese Legation in Delhi
through our New Delhi office for entry visas for himself and Mrs.
Cannings. Our New Delhi office telephoned the Legation on 23rd October,
when they were informed that they were unable to give any indication
when they could expect to get the application forms. Enquiries have been
made weekly since then, but our New Delhi office have merely been told
that the matter has been referred to Peking.

It is possible that by now our New Delhi office will have received the
application forms. However we should be most grateful if you would
kindly contact the Chinese Foreign Office at your discretion and
endeavour to expedite the issue of the application forms. Alternatively,
if the forms can be obtained in Peking, they could be forwarded by us to
our Amritsar office direct.

Yours faithfully,

Manager.

J. Murray, Esq., C.M.G., Far Eastern Department.

To Shutart

ہے؟

With the compliments of

THE OFFICE OF

THE BRITISH CHARGÉ D'AFFAIRES

(T. Peters)

PEKING

30 November, 1967

CONFIDENTIAL

CONFIDENTIAL

Res14

office of the British

Charge d'Affaires,

PEKING.

30 November, 1967

I am sorry about the muddle over the enclosure to my letter of 7`October
about the Hong Kong Bank which you reported in your letter of 15
November to me. Since our whole office was in Ray Whitney's flat at the
time and my own share of it was a corner of a sofa, you will understand
how this came about.

I

am sure that the Foreign Office will have 1

returned the enclosure to you by now.

58

RECEIVED IN BARCHIVES No.31

1 DEC 1967

FFC5/4

2. In the meantime you will have seen from Foreign Office telegram No.
1027 of 27 November, to us that the Hong Kong Bank will be reconsider-
ing their plans for closing the Shanghai office just at present.

am sending a copy of this letter to Murray in Far Eastern Department.

We have.

A. Q.

11/12 FZ25/453

I

(T. Peters)

Elliott, Esq., nial Secretariat,

g Kong.

CONFIDENTIAL

F25/4.

CYPHER/CAT A

N12=-Folios (54)-(57)

TRANS. TO FE24/4 22)

CONFIDENTIAL

FOREIGN OFFICE TO PEKING

TELA

1027 27 November 1967

(FED)

53

t

TOP COPY

CONFIDENTIAL.

ADDRESSED TO PEKING TEL NO 1927 OF 27 NOVEMBER REPEATED FOR INFORMATION
TO HONG KONG,

YOUR TELEGRAM NO 267 : HONG KONG AND SHANGHAI BANK.

DE LA MARE SAW STEWART, THE GENERAL MANAGER OF THE LONDON OFFICE THIS
MORNING AND PUT THE POINTS IN PARAGRAPH 1 OF YOUR TELEGRAM UNDER
REFERENCE. STEWART ACCEPTED THEM AND INDICATED THAT, IN PRESENT
CIRCUMSTANCES, THEIR CONCERN FOR SELF'S WELFARE TOOK PRIORITY OVER THE
QUESTION OF CLOSURE. HE WOULD THEREFORE TELEGRAPH

TO HONG KONG RECOMMENDING THAT THE PROPOSED LETTER TO THE CHINESE

SHOULD NOT BE SENT. WE AGREED THAT THE SITUATION COULD BE REVIEWED

IN THE LIGHT OF ANY IMPROVEMENT IN SINO-BRITISH RELATIONS WHICH

MIGHT TAKE PLACE OVER THE COMING MONTHS.

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