2. THE MOST WELCOME NEWS GIVEN IN YOUR TELEGRAM NO 272 MAY ALSO
HELP IN THIS CONNECTION.
SOSFA
DEPARTMENTAL DISTRIBUTION
F.O. F.E.D.
C.O. HONG KONG DEPT.
F.E.P.D.
il, Sharlad
p.a.
FC 3/3 (181)
7
·
+
CONFIDENTIAL
1622
پو گردن
NOTHING TO BE WRITTEN IN THIS MARGIN
I
Registry No. FC
DEPARTMENT
FC 574.
PRIORITY MARKINGS
SECURITY CLASSIFICATION
Top Secret
fecret
Confidential
Restricted
Anclavelled.
•
Jomediese d -Priority- Routine
~Date)
• Date and time (G.M.T.) telegram should reach addressee(s)
Despatched
0 235
53
-
----------ndanovske HR+Akosten÷mul. ---------------
HE
TER
CONFIDENTIAL
--------------HAHHAHAHdakladacium----------||
PRIVACY MARKING
In Confidence
"Security classification" -if any
[Secu
Ert.
[
Privacy marking --if any
]
Lode
Cypher
Draft Telegram to:-
PEKING
PEE
No.
(Date)
And to:-
1027
27/11
[Codeword-if any).
Addressed to
telegram No.....
And to
ILJI
Peking
------------
FULL..
1027 (date)
------
I LINZ 1
repeated for information to......
Hong Kong
Saving to.....
12 ...
-4----------
37/11
N-IIJLOOIJ `----` -------
PILLOL LLOJI
-----
--
-----|| ---
Repeat to
HÃNG XONG
2419
Saving to:-
Distribution:-
Departmental
P.E.D.
0.0:
H.K.D. F.E.P.D.
Copies to:-
Bank.
Your telegram No. 267: Hong Kong and Shanghai
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.
indicated
Stewart accepted them and eaid that, in present circumstances, their
concern for Self's welfare
You be
biguity over
spektent than the question of closure.
Alcomm and in "
He would therefore telegraph to Hong Kong/ inevi
that no topo le not
пров
рибрал teken on sending the A
letter to the Chinese) Ve 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.
2 The most welcome news
Given dom Denson belts in this connection.
held
in your telepam No 272 may also
た
27/4
Cypher/Cat A
CONFIDENTIAL
FAMEDIA TE PEKING TO FOREIGN OFFICE
Telno 273
27 November 1967
52
$
*# IN
ARCHIVUS No.31
2 € NOV 1967
FC574
CONFIDENTIAL
Addressed to Foreign Office telegram No. 273 of 27 November. Repeated
for information to Hong Kong, Washington, POLAD Singapore.
My immediately preceding telegram.
I then raised with Mr. Hsueh the cases of several British subjects who
were in trouble in China. I referred to Mr. and Mrs. Fels in Shanghai
for whom the issue of exit visas had been delayed
FC3/21.
for months, to Mr. Grey unofficial representative Reuters who had been
under house arrest for 4 months and incommunicado for 3 rano to "r, hatt
who was detained in Lanchow and about whom we
had asked for information and for Consular access. I enquired whether he
could give me any news about these cases.
2. Mr. Hsueh said in reply that his communication concerned only staff
of British offices in China and did not apply to other British subjects.
He promised to enquire about Mr. and Mrs. Self and said that we could
expect some information soon about kr. Yatt. On the subject of kr. Grey
he said we had been informed by Newe Department of Ministry of Foreign
Affairs that access to him could not be granted until officials of
N.C.N.A. were allowed to visit N.C.N.A. prisoners in Hong Kong. I
pointed out that N.C.N.A. officials had in fact been allowed to visit
Mr. Hauch Ping and that we had informed News Department to this effect.
Mr. Hsueh said that he had not received a report on this matter but
promised to look into it.
3.
I shall be grateful if Hong Kong would send by immediate telegram
details of visits with dates and if possible names of N.C.N.A. officials
who have been allowed access to Hauch Ping. I would then propose to send
this in writing to kinistry of Foreign Affairs.
Foreign Office pass to Hong Kong 125, Washington 29 and PULAD Singapore
29.
FC13/8.
Mr. Hopson
FO/CO/WH. DISTRIBUTION
F.E.D.
HMEER
[Repeated as requested!
CONFIDENTIAL
ADVANCE COPIES SENT
Original Copy on F£313 (27 Copy also on F2 13/8 62
and FC 3/21
(82)
CONFIDERITI AL
CYPHER/CAT A
IMMEDIATE PEKING TO FOREIGN OFFICE
elo 267
CONFIDENTIAL
TOP C
RECEIVED IN
ARCHIVES No.31
27NOV 1967
24 November 1967
Now see /53
Feb 4
разли
Addressed to Foreign urtice telegram No.267 of 24 November. Repeated for
information to Hong Kon
(2+1)
Your telegram No.1003: Hong Kong and Shanghai Bank.
Following are my detailed comments on paragraph 2 of your telegram under
reference:-
2.
(a)
(b)
(c)
હ
(d)
Although I think that self's detention in Shanghai was initially on
account of alleged technical breaches of Chinese laws by the Bank, delay
in granting an exit visa to nim ahd his wire has now become political
and is probably bound up with the difficulties being experienced by this
mission and British subjects generally.
The Chinese may be Less keen on using sterling as a reserve currency
after the recent devaluation but I agree that it will be some time
before the Chinese will allow all bank officials to leave Shanghai.
I think it quite possible that the stair of the bank in Shanghai would
be as far as possible under nouse arrest or nave their movements
severely restricted if the Bank announced their intention or closing at
present. There are one British and two German engineers at present under
some rorm or arrest in Chine as well as rive Japanese businessmen.
I fully agree that no one in china will make a decision on an
application to close at present.
Furthermore the Chinese would certainly see the move as having political
implications, and as conilicting with the line I took in my interview of
14 November and would be left bartled and suspicious about our general
intentions. The move at the present time would therefore not only do the
Bank no good but might also reduce the chances of improving the
situation of this mission and, as a consequence, of British subjects
generally. I therefore strongly recommend that the Bank be asked to
postpone their decision at least until I see now the lifting ɗ
movement_restrictions affects the political climate and until we are
clearer about Sino/British relations in general. 3. To sum up I think it
essential that the Hong Kong Bank should carry on as normal for at least
several more montus. The best hope for the release of self and nis wire
is as a consequence of normalized diplomatic relations; but if this
/ hope
CONFIDENTIAL
CONFIDENTI AL
Peking telegram No. 267 to Foreign Orrice
-2-
hope is not fulfilled we could look at the situation again.
I also hope that the Hong Kong bank will take the Chartered Bank into
their confidence. If the Hong Kong Bank did decide
to pull out this would leave the Chartered very isolated and they might
prefer to take similar action.
in that case they would be wise to do so.
Foreign Office pass Priority Hong Kong 123.
Mr. Hopson
[Repeated as requested]
Indeed I think
DEPARTMENTAL DISTRIBUTION
ADVANCE COPIES SENT
F.0.
F.E.D.
C.0.
H.K.D.
VVVVV
F.E.P.D.
CONFIDENTIAL
PLEASE NOTE OUR NEW TELEPHONE NUMBER: 01-623-4365
Fard (50)
The Hongkong and Shanghai Banking Corporation.
RECEIVED IN
ARCHIVES No.31
24 NOV 1967
(INCORPORATED IN HONG KONG WITH LIMITED LIABILITY]
4. Gracechurch Street.
London, E.C.3.
21st November, 1967.
Best Arther, FE5/4
Dear
I have been asked by my Head Office to consult you about the somewhat
difficult problem of our Shanghai Office, coupled with getting Self out
of China.
It seems to me that the best thing I can do is to forward you the letter
I have received from Hong Kong and after you have studied it, perhaps
you will give me a ring and if you wish I shall naturally be pleased to
come and call
on you.
The letter is attached and I think it should be quite clear to you, but
I would just add that H. J. Shen is a respected Chinese whom we
recruited some years ago to our Management in Hong Kong Office.
Shen is very well-known
His
in Hong Kong and Taiwan circles and no doubt, like everybody else, does
a good deal of China listening in Hong Kong. reservations about the
course of action my Head Office propose are, as you see, fairly strong.
I should be grateful for any advice you could give we on this matter.
Laft lelegram facittad / Jours pincerely, in secry i'r Stewart of/11 on
Thunday.
об
A. J. de 1 Mare, Esq.,
Foreign Office,
тел
London, S.W.1.
Gurse
вни
(G. OP. Stewart
Tel to Peking part Com
dec
Са
22 M
[
S/0
11 SH1967
16
?
THE HONGKONG AND SHANGHAI BANKING CORPORATION
PRIVATE AND. CONFIDENTIAL
HEAD OFFICE.. 15th November,.-19.67.
var
y dear Stewart,
I refer to the Chief Manager's private and confidential
letter of 3rd November.
SHANGHAI OFFICE
We have now received Self's private letter of 30th October in which he
stated that it was quite likely the
Chinese authorities would be glad to see us close but that
they would not make it easy for us and that our approach
must be put in such a way that it could not be ignored.
We are now examining ways and means of doing this and
we consider that the present political situation between
Hong Kong and Peking is such that it would be unwise for
Head Office to attempt to initiate closure from here. We
think therefore this should be done in London and we have
in mind sending a letter to you signed by the Chairman and
Chief Manager addressed to the Minister of Finance in Peking
for forwarding through diplomatic channels if this can be
arranged.
attached.
A draft of the form of letter we would send is
We also think it would be advantageous to arrange
for a copy to be delivered to the Commercial Counsellor or
/cont'd...
THE HONGKONG AND SHANGHAI BANKING CORPORATION
HEAD OFFICE........
(2)
19......
his equivalent at the office of the Chinese Chargé d'Affaires
This copy
in London under a covering letter from yourself.
would we hope be passed on to Peking and our intentions thus
be made known in the event of the British diplomatic authorities
not being able to take early action. You would then advise
Self by semi-official letter of the action you had taken
enclosing a further copy of the letter for his reference.
However, before we go ahead on the lines indicated,
we would like you to consult with de la Mare and obtain his
views on our proposals and also any reactions he may now have
on our decision to close down. In this respect H.J. Shen
when consulted expressed strong reservations about the wisdom
of closure at this stage his main reasons being as follows:-
1) He feels that Self's detention is now a political
matter and the application to close our Shanghai
Office could be construed by the Chinese Government
as the first move towards H.M.G. breaking off relations
with China.
2)
As China is barred from keeping US dollar balances
she uses sterling principally as her reserve currency,
and, should further untoward incidents occur, it is
possible she will feel that the Bank of England might
consider blocking her sterling balances. Shen feels,
therefore, that should such a situation arise the
/cont'à.
THE HONGKONG AND SHANGHAI BANKING CORPORATION
(3)
HEAD OFFICE......
3)
4)
fact that China has British nationals for use as
hostages would be of considerable value to her in the
subsequent negotiations, and, for this reason, considers
it unlikely that the Chinese authorities will permit
us to reduce our normal Foreign Staff complement of two.
He feels that although our Foreign Staff have not to
date been molested in any way, if we take this step
conditions might deteriorate for them.
He feels that in view of the situation in China at
present no-one would make a decision one way or the
other on our application.
Shen has expressed his views sufficiently strongly that
we must obviously give them very serious consideration and we
would like de la Mare to be made fully aware of them during
your discussions.
As a matter of courtesy the Chief Manager has advised
the Governor of our desire to close down in Shanghai and
Elliott, Political Adviser to the Hong Kong Government, has
been provisionally briefed by us on the method of approach
we have in mind.
We are naturally anxious to get things moving and would
/cont'd.
THE HONGKONG AND SHANGHAI BANKING CORPORATION
(4)
HEAD OFFICE.......
like you to let us know the result of your discussions
with de la Mare as soon as possible.
Yours very truly,
19......
G. O. W. Stewart Esq., LONDON.
[
inister of Finance,
eople's Republic of China, PEKING, China.
Dear Sir,
DRAFT
RCG/var
OUR SHANGHAI OFFICE
We have had under consideration for some time the
position of our office in Shanghai and our Board of
Directors have now reluctantly come to the conclusion that
we should initiate action to close down in that city as
soon as can be arranged. In arriving at this decision
we have been influenced by a number of factors, not the
least of which is the difficulty we have recently
encountered over obtaining exit visas for our staff.
This is not to imply any cessation on our part of
financing the trade of China, which we shall continue to
do from London and from our other branches outside China.
The object of this letter therefore is to obtain your
formal approval for the liquidation of our business in
Shanghai and for the authority for visas to be issued
for our British staff to leave China as soon as can be
arranged. In this respect we would request that
Mr. and Mrs. D.N.H. Self, our present manager and his wife,
whose replacement arrived in Shanghai as long ago as
14th May, should be granted exit visas and permission
Ve
be given for his replacement, Mr. D.G. Lachlan, to assume
the managership during the period of liquidation.
would add that in the past we have always had the closest
co-operation from the People's Republic of China in arranging
reliefs for managers and our other British staff and
obtaining exit visas for them within a short period of the
time of arrival of their replacements.
/cont'd
(2)
Once we receive your formal approval for closure
the necessary arrangements will be put into force as
soon as possible. We do not anticipate that it will
require the retention in Shanghai of our normal complement
of two British staff to handle the necessary closing down
formalities and in addition to authorising exit visas
for our present manager and his wife, we would therefore
request that visas also be issued to Mr. and Mrs. T.R.K.
Crozier and family, leaving Mr. Self's replacement,
-
Mr. D. G. Lachlan, to handle the final closure it being
understood that an exit visa for Mr. Lachlan would be
forthcoming when all matters have been finalised.
It would be appreciated if this application could
be given early consideration to enable us to put in train
the necessary arrangements.
Yours faithfully,
J. A. H. Saunders
Chairman and
Chief Manager.
CYPHER/CAT A
Fes/4.
TOP COPY
CONFIDENTI AL
IMN JIATE FOREIGN OFFICE TO PEKING
49
TELNO 1003
22 NOVEMBER, 1967
1
(FED)
See - 51
pa lue
CONFIDENTIAL.
ADDSD TO PEKING TELNO 1893 OF 22 NOVEMBER REPEATED FOR INFORMATION TO
HONG KONG.
HONG KONG AND SHANGHAI BANK,
BANK HAVE ASKED OUR ADVICE ABOUT MOVES THEY WISH TO MAKE TO CLOSE THEIR
BRANCH IN SHANGHAI. THEY PROPOSE TO ASK US TO FORWARD THROUGH DIPLOMATIC
CHANNELS A LETTER TO MINISTER OF FINANCE SAYING THEY INTEND TO CLOSE AND
SEEKING COOPERATION IN THIS AND ISSUE OF EXIT VISAS FOR STAFF. ALL STAFF
WOULD BE WITH DRAWN IMMEDIATELY
WITH THE EXCEPTION OF LACHLAN WHO WOULD HANDLE CLOSURE. COPIES OF LETTER
WOULD BE SENT TO CHINESE OFFICE HERE AND TO SELF.
2. ONE OF THEIR TRUSTED CHINESE ADVISERS IS STRONGLY AGAINST THIS
ACTION FOR THE FOLLOWING REASONS:
(A) SELF'S DETENTION IS POLITICAL AND ATTEMPT TO CLOSE SHANGHAI BRANCH
WOULD BE SEEN AS FIRST MOVE TOWARDS BREAKING DIPLOMATIC RELATIONS
(B) CHINA USES STERLING AS RESERVE CURRENCY AND FEARS BLOCKING OF
STERLING ACCOUNT FOR POLITICAL REASONS, HOSTAGES ARE THEREFORE IMPORTANT
AND CHINA IS UNLIKELY TO ALLOW ALL BANK OFFICIALS TO LEAVE.
(C) ALTHOUGH BANK STAFF HAVE NOT SO FAR BEEN MOLESTED, THIS SITUATION
MIGHT CHANGE IF CLOSURE WERE ANNOUNCED:
(D) IN PRESENT SITUATION IN CHINA, NO-ONE WILL MAKE A DECISION ON
APPLICATION TO CLOSE.
3. WE SEE FORCE IN ARGUMENTS AT (B) AND (D) BUT LESS IN (A) AND (C).
GRATEFUL TO HAVE YOUR VIEWS ON ALL THE ABOVE AND ANY ADDITIONAL POINTS
YOU THINK SHOULD BE CONSIDERED, BY 25 NOVEMBER.
SOSPA
DEPARTMENT AL DISTRIBUTION
F.0.
FAR EASTERN DEPT.
C.0. HONG KONG DEPT.
F.E. & P.D.
CONFIDENTIAL
[
Registry No. F4
DEPARTMENT
Far Eastern Dept
SECURITY CLASSIFICATION
Fog Secret
SeEred
Confidential
Laffassified
PRIORITY MARKINGS
(Date).
Flash. Immediate
469
......................`LLJJILLOJJILOKALLILLEH
• Date and time (G.M.T.) telegram should
reach addressee(s)
.|-|-|
22/11
ER
1550
NOTHING TO BE WRITTEN IN THIS MARGIN
22/14/16-
PRIVACY MARKING
In-Confidence
[Security classification]
-if any
En Clair. Cada
[
Privacy marking -if any
Cypher
Draft Telegram to:-
No.
PEKING
(Date)
1003...
---
And to:-
22/1.
[Codeword-if any]
]
Addressed to PEKING
telegram No.
And to...
------
...
1003
CONFIDENTIAL.
I
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