fco-21-93-foreign-including-british-banks-and-problem-of-staffing — Page 16

National Archives 英國國家檔案館 All

THE APPROPRIATE ARCHIVES DIVISION FOR RETENTION

+

L

I

16352

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No. F25/44

FE Dept

DEPARTMENT

SECURITY CLASSIFICATION

Top Secret

Secret

Confidential

Restricted

Unclassified

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

reach addressee(s).

PRIORITY MARKINGS

(Date)..

Despatched

Aso

Flash

Immediate Priority

M

JOSE

А

35

HI+N+He has...dem----

-

CYPHER

Security classification" --if any

[Se

[

Privacy marking -if any

]

Confidential

..

...---

[Codeword-if any]

Addressed to

ILII

PRIVACY MARKING

In Confidence

En Clair. Code Cypher

Draft Telegram to:-

Hong Kong

No.

HALL

(Date)

1817

And to:-

119

H

telegram No.

And to

repeated for information to

Saving to...

Pro ZODELL.

THE

Kang Hong

(date)

Repeat to:-

Saving to:-

Distribution:-

Dept:

Copies to:-

Your telegram No. 1321: Banks in Shanghai.

We have been in touch with both the Hong Kong

and Shanghai and the Chartered Banks here. The

former have confirmed their desire to withdraw from

Shanghai, but the latter say it is their intention

to stay onothera

2.

Both Banks have been informed in confide

L.

baragraph

nfidence of

the gist of the passage in the message from the

Foreign Secretary seanlegg to th

the

Imy Pelegram No 1on1story

Chinese Foreign Minister

1801

which dealt with British subjects in China) "Helevant

passage reeds as follows, after the suggestion

salone be witidrawas

*1 Fould be prepared to allow all members of

your diplomatic mission and other official organisa tlone with their
dpendents and staff and any other ditizens of the People's Republic of
China in

t

Anited

3. We have

United Kingdom who wished to leave this country

to d so, the clear understanding that you

would allow all British subjects in China,

diplomatic, official or others who wished to

omatic, offic

Leave to do so at the same time.

#o Bust await Chinese reaction to this

message before proceeding further.

+ CA

We have made it clear that

3.

There is

w

gensomker that

the

he.

Chriese will accepte such

arrangement. The matter

omn

Lan

considerat further when the

MESSAGE

Chien seantion to the neenage

is known.

We have no repeat

confidential

I means

with Self.

of communicating

(9430) D4.033246

G.W.B.Ltd. Gp.14)

NOTHING TO BE WRITTEN IN THIS MARGIN

E

Reference.

wild(34

RECEIVED ARCHIVES

1967

Mr.

Claims Dept.).

Samen (Chains

Please

Qu

top letter inside file.

I should be gratiful if you

could

cheek fro

tthe

claims

the damage

let me

have details.

Писто

Lecou. 24/3

2/8.

involved,

and where

took place. (paragraphs

2

a 3). and

Botharland

5.69.

%

Request to Regy. to obtain all files.

Mr Styrlande. (F.E..

now. (F. Ev. Dept

Dept.)

B31/8

I am attaching all our files

as for attached list on the MESNY claim.

Would you please

L.R.R.

return them direct to

The relevant papers are

or follows

Feng A⋅ on H.G.1101/5 (1961)

+

flagged

in the

H6.1101/277 (1961

Claim in respect of property. International Settlement, Shanghai.

Frag.B...

Are does. Oza

+

Payment arrangements

in

For what it is worth in this context the usual interpretation of
effective compensation is that is should be convert ble currency but the
advice of Legal. Depts should be sought before

is conveyed to Peters in Peking.

opiacion

incon

C beacon Dept Дере

3013/67.

Papiès attached as requedect

лед

23/8/6/7/

daims Regy,

Room 515,

LKR

1st Avenue the

+

L.R.R

Holbera

1

Please could you send over Japan HG 1233/70 (1952) *

HG 1233/102 (1954) *

China HG 1101/5 ts (1955) I

Whi 1103/15

(1961) X

HG 1101/277

C196/α

Jij Hi 1233/6

HG 1101/176

Crass) X

(1955) X

These RPS

ӣ

are for Mr. STEDMAN

ù claims department.

Thank

you

Alethin

Rt Regy: "/

32

(1115/67)

RECEIVED IN

ARCHIVES No.31

2 JUL 1967

F25/4

My Dear Jolin.

ما

CONFIDENTSIAL

Enter

Mr. Marland Рос ребен

Office of the British

Charge d'Affaires,

PEKING.

17 July, 1967

Fes/4

3

34

Derrick Self of the Hong Kong Bank in Shanghai had telephoned us a few
days before we received your telegram No. 600 (our reply to which, No.
574 to Hong Kong, you will have seen), and had told us. thert the
"inquisition" into the Bank's affairs had begun.

2. He said that besides the I.C.I. case two charges had been made which
involved former representatives of H.M.G. in Shanghai. One charge was
that in 1961 the Shanghai Branch of the Bank had helped a Mr. Padilla, a
Filipino still resident in Shanghai, to open an account in Hong Kong,
and that in October of that year the sum of £550 had been paid into that
account by H.K.G. The Chinese allege that at this time Mr. Padilla was
employed by the British represen- tative in Shanghai, and claim that if
the payment was made in connexion with this employment, it should have
been made in China and in Chinese currency.

3. The second charge concerns a British subject called Mesny, who lived
in Shanghai until his death in about 1963. It appears that in 1961 Mr.
Meany received from H.M.G. a sum in respect of "war damage claim", which
was paid into his Hong Kong account. The Chinese are querying whether
the payment was in connexion with damage to property in China; if so,
they allege that it should have been made in Chinese currency.

4. Self made it clear that he had not been told by the Chinese to inform
us of these cases, but was doing so on his om initiative simply to keep
us in the picture. We told him that we would investigate our records to
see if they threw any light on these allegations.

5. The only additional information that we can provide from our files
and our memories is as follows:-

(a) Padilla

Fadilla, whom several of us had met on social occasions in Shanghai
before he disappeared from view last summer, was a former employee of
the Philippine Consulate-General there who stayed behind when the
Filipinos left. We know nothing about his having been employed by us in
1961. It appears however that last year David Brookfield (then our man
in Shanghai)

J.B. Denson, Esq., 0.B.E., Far Eastern Department.

/considered

CONFIDENTIAL

CONFIDENTIAL

2

*

considered employing Padilla to sort out the old Philippine archives
which had been left in our custody. Although this never came to
anything, the Chinese found out about it from Padilla and were nasty to
Brookfield about it at the time of his departure. I enclose a copy of
the relevant extract from Brookfield's account of his interview with the
Foreign Affairs Department in Shanghai.

(b) Mesny. From a letter which has reached us since Peter Hewitt's

departure from Shanghai, it appears that Hewitt was corresponding with
the Hong Kong and Shanghai Bank in Hong Kong in their capacity as
trustees of the Kesny estate. We know nothing more about lir. Mesny,
however, and Hewitt has recorded that he destroyed the Shanghai file on
the subject before leaving.

6.

We shall not pass on to Self even this rather worthless information
since we think it best that his briefing should come to him from the
Bank in Hong Kong. It seems sensible to have no discussion of this
subject with Self, both to avoid confusing him with instructions and
suggestions from various sources (see Hong Kong telegram to us No. 330
of 12 June, para. 3) and to prevent our getting involved as far as
possible.

7. We should be grateful for any further information you can dig up
about these matters either in London or Hong Kong.

I am sending copies of this letter to Michael Wilford and to Ben Thorne
(Acting British Trade Commissioner in Hong Kong).

ever

Your ther

(T. Peters)

CONFIDENTIAL

L

1

Extract from record of meeting between Mr. D.G.H. Brookfield and Foreign
Affairs Department, Shanghal on ó July, 1966

Mr. Yang:

The second point is that according to a report made by a Filipino, V.
Padilla, to the Public Security Bureau here, you have been entrusted by
the Philippine Government to sort out the old archives of the
"Philippine Office" and you want to employ him temporarily for the work.
The "Philippine Office" is an illegal establishment and you being an
officer of the office of the British Charge d'Affaires Taking Care of
British Nationals' Affairs in Shanghai it is clearly beyond your scope
to handle any matters of other nationals. In September, 1965 you were
told that you should not overstep the scope of your function. This
constitutes an open and flagrant violation of the Geneva verbal
agreement and is also against the scope of your functions told by the
Ministry of Foreign Affairs and the Foreign Affairs Department. Your
doing so is an out-and-out violation. You must therefore stop this
immediately and give assurance that you will not repeat it in future.
(At the request of Hr. Brookfield Kr. Lo Hei-chang repeated what was
said about the first part of the second point).

Mr. Brookfield:

I want to say I have received no definite instructions from the Foreign
Office to sort out the old Philippine files which are now left in my
office. I talked to r. Padilla about listing the old files because he is
familiar with the work. I have only suggested to the Foreign Office to
employ Mr. Padilla temporarily for doing the work but no action has been
taken so far as no reply has yet been received from the Foreign Office.
As there is no action there is nothing to stop.

Fr. Chen Ting-ping:

Director Yang has said that you mentioned the temporary employment to
Mr. Padilla and this is the report made by Hr. Padilla to the Public
Security Bureau here, so this is part of the action you have already
taken. Furthermore, to handle nationals' affairs other than that of
British nationals you have overstepped the scope of your function so
this must be stopped forthwith,

Hr. Brookfield:

I wish to point out that as nothing has been started so there is nothing
to be stopped. I have asked Mr. Padilla about this as he is the only
Philippine in Shanghai. I only made a proposal to the F.O. Is there any
vilation if no action has been taken?

Mr. Yang:

You said you had talked about this matter with Mr. Padilla. This is
already a violation of the 1954 Geneva verbal agreement.

/Mr. Brookfield:

ส่ง

2

-

Mr. Brookfield:

F.0.

I have just said that I have so far received no reply from the

Ky proposal may be vetoed by the F.O.

Mr. Chen Ting-ping:

You being an officer of the Office of the British Charge d'Affaires
Taking Care of British Nationals' Affairs in Shanghai should only take
care of the British nationals affairs in Shanghai and not the affairs of
other nationals here. This has already been made very clear to you by
the Foreign Affairs Department. You have actually started the matter as
Director Yang has already pointed out and this constitutes a violation.
Any denial of this is groundless.

Hr. Brookfield:

I did not make any denial. I asked Mr. Padilla if he would like to do
this work. I have so far received no instructions from our F.0. I cannot
agree that I have taken any action.

Mr. Yang:

Mr. Padilla has said that you wanted to employ him temporarily. How can
you deny that? Furthermore, do you think you as an officer of the Office
of the British Charge d'Affaires Taking Care of British Nationals'
Affairs in Shanghai have the right to meddle with affairs of Philippine
nationals.

Mr. Brookfield:

Firstly, I have taken no action. I have merely made enquiries from Mr.
Padilla, and secondly I have not decided whether I would take any
action. So I have not started any action.

Er. Chen Ting-ning:

How can you deny that to make enquiries is not a start of the action? To
enquire is already a part of the action.

Mr. Brookfield:

If Mr. Chen can see no difference between enquiry and action then it is
a question of different language. Then we cannot make any further
argument as it is a question of different language.

Hr. Yang:

Is there any stipulation laid down anywhere that the Officer of the
Office of the British Charge d'Affaires Taking Care of British
Nationals' Affairs in Shanghai can deal with matters concerning other
foreign nationals? This is an open and flagrant violation.

Ling

CONFIDENTIAL

RECEIVED

N

33

Reference...

AK.

V, No 11

25

Mr. Dengen

1.G.1. Money

1 3 JUL 1967

Fesly

Dr. Clark of I.C.I. telephoned this morning about the Chinese enquiries
into the use by I.C.I. of the money handed by the Hong Kong Bank in
Shanghai to our Office in Peking and by Peking to I.C.I.

2. Mr. Kendall, the I.C.I. No. 1 in Hong Kong is now on leave (returning
to U.K. via Japan) and

Mr. Burrell who is now in charge has cabled asking for details of dates
and people involved in spending the money.

3. I emphasized the point made in our telegram No. 483 to Peking, 1.e.
that in our opinion dates and names should be left as vague as possible.

I also stressed that this was just as important to I.G.I. as it was to
us, since if the Chinese wanted to be unpleasant towards individuals or
prohibit their re-entry into China I.C.I. employees were every bit as
waste as our own.

I recommended therefore that I.C.I, should confirm that the money was
used for their, exhibition in October 1965 and, if pressed further, say
that it could not be accounted for separately.

· Dr. Clark said his thoughts had been very similar and that he would
advise Hong Kong accordingly.

Jharland

(K. J. Sharland) 12 July, 1967.

I agree entirch with the

:

you took.

Tami

CONFIDENTIAL

line

En Clair

'CONFIDENTIAL

PRIORITY PEKING TO FOREIGN OFFICE

Telno. 871

UNCLASSIFIED

11 July 1967

32

CC

RECEIVED IN

ARCHIVES No.31

1 1 JUL 1967

Fes/4

Addressed to Hong Kong telegram No. 574 of 11 July Repeated for
information Priority to Foreign Office

·Foreign Office telegram No. 600 to me.

[I.C.I. Money]

I have no (repeat no) objection.

31

Mr. Hopson

DEPARTMENTAL DISTRIBUTION

F.E.Dept.

Consular Dept.

SSSSS

Sent 01252/11 July 1967

Recd 07192/11 July 1967

CONFIDENTIAL

Par. 13.

*

CYPHER/CAT A

F= 5/4 B

CONFIDENTIAL

TOP COPY

IMMEDIATE FOREIGN OFFICE TO PEKING

600 10 JULY,1967 (FED)

25

CONFIDENTIAL

ADDRESSED TO PEKING TELEGRAM NO 600 OF 10 JULY REPEATED FOR INFORMATION
TO HONG KONG.

MY TELEGRAM NO. 483: 1.C.). MONEY

1.C.1. INFORM US THAT SELF HAS BEEN INSTRUCTED BY THE CHINESE
AUTHORITIES TO INFORM THEM ON 12 JULY WHAT I.C.I. DID WITH THE MONEY.

2. BURRELL, I.C.I. REPRESENTATIVE IN HONG KONG, PROPOSES TO TELL THE
BANK THERE ON TUESDAY 11 JULY THAT THE MONEY WAS SPENT ON THE

.C.I. EXHIBITION IN TIENTSIN IN OCTOBER 1965. SELF WILL THEN BE TOLD AND
WILL SO INFORM THE CHINESE. THIS MIGHT INDICATE THE DATE OF HANDOVER
MORE PRECISELY THAN CONTEMPLATED IN MY TELEGRAM UNDER REFERENCE. BUT
1.C.I. CONSIDER AND WE AGREE THAT THIS IS THE COURSE BEST CALCULATED TO
CLOSE THE MATTER AS USE TO WHICH MONEY WAS PUT WAS FOR PROJECT AGREED BY
CHINESE GOVERNMENT. IF YOU SEE OBJECTION, PLEASE TELEGRAPH FLASH TO
HONGKONG,

SOSFA SENT 18002/10 JULY

DEPARTMENTAL DISTRIBUTION

F.E.D.

CONSULAR DEPT.

CONFIDENTI AL

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No. F

DEPARTMENT

FC5/4

SECURITY CLASSIFICATION PRIORITY MARKINGS

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

reach addressee(1).........

Top-Secret ingres

Confidential

Routine

PRIVACY MARKING

In Confidence

Ex Clair Lode

Cypher

Draft Telegram to:-

Peking

No.

CONFIDENTIAL

ER

FC5/4

PILI

(Dat

Despatched

Fark

omvedlate

F

[Security

Security classification

if any

ztion]

[

Privacy marking if any

1

[Codeword-if any] ... -

Addressed to

telegram No......

boo

600

And to..

2004I...

(Date) 10/7

And to:-

repeated for information to

DALLAS

..

- domin----- pay

Peking

LEJOJALI-Lad➖ ➖➖

(date)

m

to

Hong Kong.

-----------➖➖➖➖➖➖.

VIL ------

CALL

12

Saving to

Immelt Repeal to: 7

Hồng Kong

VIACO

Saving to:-

`shand

Distribution:- Departmental

FE .D.

Consular Dept.

Copies to:-

My telegram No. 483: [1.0.1. Money

I.C.I. inform us that Self has been instructed

by the Chinese authorities to inform them on 12

July what I.C.I. did with the money.

2.

Burrell, I.C.I. representative in Hong Kong,

proposes to tell the Bank there on Tuesday 11 July

that the money was spent on the I.C.I. exhibition in

Tientsin in October 1965, Self will then be told

mant and will so inform the Chinese. This wedi indicate

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