fco-21-93-foreign-including-british-banks-and-problem-of-staffing — Page 19

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I agree.

14

Please telegraph your comments immediate.

Mr. Hopson

DEPARTMENTAL DISTRIBUTION

F.0.

F.E.D.

Consular Dept.

Finance Dept.

C.O.

D.T.D.

88888

Sent 0218z/9 June Recd 08052/9 June

ja see 18

ра

CONFIDENTIAL

14

FC 5/4

(FED)

CYPHER/CAT A

FOREIGN OFFICE TO PEKING

EDIATE

TELNO. 464

8 JUNE, 1967

CONFIDENTIAL.

ADDRESSED TO PEKING TELEGRAM NUMBER 464 OF 8 JUNE REPEATED FOR
INFORMATION TO HONG KONG.

YOUR TELEGRAM NUMBER 650 AND HONG KONG TELEGRAM NUMBER 789 TO

C.O.: 1.C.I. MONEY.

q

OUR PRELIMINARY REACTION WAS THE SELF SHOULD CONTINUE TO INSIST ON BEING
GIVEN FULL DETAILS OF ALLEGED CONTRAVENTIONS (YOUR TELEGRAM TO HONG KONG
NUMBER 415) AND NOT RISK INCRIMINATING HIMSELF BY ANY UNNECESSARY
ADMISSIONS. I ASSUME YOU NOW JUDGE THAT, AS A STRONG INDICATION HAS BEEN
GIVEN BY THE CHINESE AUTHORITIES THAT THERE IS SOMETHING IRREGULAR ABOUT
THE 1.C.I. DEPOSIT, A TRANSACTION OF WHICH THE BANK AND THE FIRM HAD
THOUGHT THE CHINESE WERE UNAWARE, IT WOULD BE TO HIS DISADVANTAGE TO TRY
TO HOLD OUT LONGER WITHOUT SAYING SOMETHING. SINCE THE MATTER WAS
REFERRED TO ON THE TELEPHONE TO PETERS, THE CHINESE PRESUMABLY MAY ALSO
SUSPECT WE ARE INVOLVED.

2. HODGKIN AND PORTER OF 1.C.1. AND THOMPSON OF THE HONG KONG SHANGHAI
BANK WITH WHOM WE HAVE DISCUSSED THE PROBLEM FEEL STRONGLY WE SHOULD
ADVISE SELF TO MAKE SOME EARLY RESPONSE. WE ALL GREATLY PREFER SOME
COURSE ON THE LINES OF THAT PROPOSED IN PARAGRAPH 7 OF YOUR TELEGRAM
UNDER REFERENCE TO THAT IN PARAGRAPH 4 OF THE HONG KONG TELEGRAM WHICH
WE FEAR MIGHT INVOLVE SELF IN FURTHER DIFFICULTIES.

3. IF COURSE YOU PROPOSED WERE FOLLOWED PRESUMABLY SELF WOULD INFORM
CHINESE HE UNDERSTOOD A DEPOSIT FOR SUM IN QUESTION HAD

BEEN MADE WITH YOU. CHINESE WOULD THEN APPROACH YOU DIRECT OR THROUGH

/ SELF AND

CONFIDENTIAL

pa see 18

ра

CONFIDENT LAL

FOREIGN OFFICE TELEGRAM NO. 464 TO PEKING

-2-

SELF AND YOU WOULD SAY YOUR RECORDS INDICATED RECEIPT OF THAT SUM. IT
WOULD THEN BE FOR THE CHINESE TO INDICATE IN WHAT WAY, IF ANY, THIS WAS
IN CONTRAVENTION OF THEIR REGULATIONS AND HOW THE BANK SHOULD PROCEED TO
CLEAR THE MATTER UP. THERE WOULD BE NO REASON AT THAT STAGE TO VOLUNTEER
FURTHER INFORMATION OF OFFER PROOF THAT YOU HELD THE MONEY. IF
EVENTUALLY CHINESE DEMONSTRATED THE TRANSACTION BETWEEN 1.C.1. AND THE
BANK WAS ILLEGAL AND THAT MONEY WAS FORFEIT TO THEM AND/OR INSISTED THAT
IT BE HANDED OVER BEFORE SELF WAS ALLOWED TO LEAVE CHINA, YOU COULD THEN
COMPLY AND I.C.I. WOULD REIMBURSE THE FOREIGN OFFICE.

4. YOUR TELEGRAM NUMBER 656 JUST RECEIVED. WE AGREE YOU SHOULD ADVISE
SELF AS SUGGESTED BUT CONSIDER THAT IF CHINESE APPROACH EITHER YOU OR
KENDALL, YOU SHOULD NOT REPEAT NOT GO BEYOND ACTION SUGGESTED IN
PARAGRAPH 3 ABOVE. WE AGREE THAT PETERS SHOULD NOT

BE MENTIONED BY NAME.

5. PROVIDING YOU AND THE 1.C.1. AND BANK REPRESENTATIVES IN HONG

KONG SEE NO OBJECTION PLEASE ACT ACCORDINGLY.

BOSPA

DEPARTMENTAL DISTRIBUTION

F.0.

F.X.D.

CONSULAR DEPT.

FINANCE DEPT.

0.0.

D. T.D.

SENT 16472 8 JUNE

CONFIDENTIAL

X

NOTHING TO BE WRITTEN IN THIS MARGIN

I

I

Registry No. de la mare

DEPARTMENT

SECURITY CLASSIFICATION PRIORITY MARKINGS

Top

!

Restplass

PRIVACY MARKING

In Confidence

-Flash-

Immediate

(Date)

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

reach addressec(s)

8/6

LILIJOIL

Despatched 4

J

י

[Secu

•Security classification] -if any

[

Privacy marking -if any

1

11..

די .י

CONFIDENTIAL

Peking

----- --..

(date)

S.TIT. PL. SHIP.

.LJILOIJIJI

Hong Kong

Cypher.

Draft Telegram to:-

Peking

No.C. 46.4.

[Codeword-if any]

Addressed to

telegram No.

464

And to

I --------------- AN

(Date) 8/6. repeated for information to

And to:-

INT LILILL

(A BETA brandt beveik kakapokuty

ко

Saving to...

Pla

A

Repeat to:-

Hong Kong (Immediate)

Saving to: Play C

Distribution:- Departmental

F.0.

F.E.D. Consular

Finance

Copies to

D.T.D.

Your telegram No. 650 and Hong Kong telegram

No. 789 to C.0.:

I.C.I. Money

Our preliminary reation was that SELF should

continue to insist on being given full details

of alleged contraventions (your tel. to Hong Kong

No. 415) and not risk incriminating himself by any

unnecessary admissions. I assume you now judge

that, as a strong indication has been given by

the Chinese authorities that there is something

irregular about the I.C.I. deposit, a transaction

of which the Bank and the firm had thought the Chin-

eae were unaware, it would be to his disadvantage

to try to hold out longer without saying something.

Since the matter was referred to on the telephone

to PETERS, the Chinese presumably may also suspect

we are involved.

/2.

2.

HODGKIN and PORTER of I.C.I. and THOMPSON

of the Hong Kong Shanghai Bank with whom we have

discussed the problem feel strongly we should

advise SELF to make some early response. We all

greatly prefer some course on the lines of that

proposed in paragraph 7 of your telegram under

reference to that in paragraph 4 of the Hong Kong

telegram which we fear might involve SELF in further

difficulties.

3. If course you proposed were followed presum-

ably SELF would inform Chinese he understood a

deposit for sum in question had been made with you.

Chinese would then approach you direct or through

SELF and you would admit the feet say

your

It would

recorde indicated receipt of that sum.

then be for the Chinese to indicate in what way,

this was in contravention of their regulations

if any,

and how the Bank should proceed to clear the

matter up.

There would be no reason at that stage

to volunteer further information or offer proof that

you held the money. If eventually Chinese

demonstrated the transaction between I.C.I. and

the Bank was illegal and that money was forfeit

to them and/or insisted that it be handed over

before SELF was allowed to leave China, you could

then comply and I.C.I. would reimburse the Foreign

Office.

Grateful for your urgent views and Chore of

I-C.I. and Bank representatives in Hong Kong

before any further advice is gives-to-SELF.

H/.

н

30) D4033246 600m 1/64 0.W‚B Lad Gp $63

NOTHING TO BE WRITTEN IN THIS MARGIN

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

Your

Pelting telegram no. 656 just received.

We agree you should advise Self as suggested

but consider that if Chinese approach either you

or Kendall, you should, simply admit that parcel

not repeat not beyond action

di

fo sás handdo to Bonk and leave further action tu

Chinese no suggested in paragraph 3 above.

agree that Peters should not be mentioned by

name.

5.

We

Providing you and the I.C.I. and Bank

representatives in Hong Kong see no objection

please act accordingly.

CONFIDENTIAL

8/6

Ed (1626)

Reference..

13

Mr. Bonami Braní

To save time, we might

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the

Wines

of the attend Draft. A.B.

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Reference...

The all makes a TEDA

LEAH HITTADES KA KARA PH 1

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Calle from foue

Additional paragraph for telepam.

4 leking tetno 656 just received. We

afre

A action consient

suffered

in

paragraph I

is.

but food that action to enggested in paragraph

int not

2. should not be taken by Kendall, but

that he should, if approached; h simply admit that parcel was

and leave funker op action to Chinese a

paragraph 3. above. Wi

sexperted in bition should not be mentioned by

name.

ари

handra to bank

Heat

La para

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i

|

ein criginal craft

B

5.

Providing you

and the I.C. I. and

Bank representatives age in Hung Kung

no objection please act-accord.

accordingly.

B4 (1627)

NOTHING TO BE WRITTEN IN THIS MARGIN

13

Minutes

RECEIVED IN FARCHIVES No.31

JUN 1967

FC 5/4

Flag A

Согодила

Hong Kong Shanghai Bunkk

in Shanghai

Mr. Self, manager of the Hong Kong | Shangten Bank branch in Shanghon is
encountering ditfenition with the Chinese a tout

+

om 1.C.1. Deposit make in 1964

after 1.C.1's official closure in

china (Peking tel. No. 650]. The sum involves was Yuan 9445.85

earned Degirmarkety in commission.

This sum was

harried oval bu

over

{My

Stewart?

the tum Hong Kerry Bank

in Marghin / to

manage

Britisa Entensy comid

Who

Yone it

to

Piling where it'

was die bruised

Disbursed to 1.0.1.

repiesmiratives Yo

Cove

Local

buy some

expurns of visitors and

of the expense of the 1.6.1.

Ticntain exhi batman in 1965.

An the moNRA,

Vin

Mul

ben

experint. The Umina anthritis do nos apparently know of

Minutes

WYNN wit

in the trans within

but ohi Tum

a deponi wa

wer

made by 1.6.1. Yo the

H.K. Bank.

2.

Peking home proposi

(pawn. 7 of that Pel wron

refierno) that in onto to

have the Suf extricate minisuf

we might admit secarving Сизни при 1.6.7. ранил

to

as fou the M.F.A. and

AIR

Tim

вонить з

10.1. what

be Jone

Whi [K-

Mr. Kendar

J.C.S.

Chariman in Hong Kong

anges consutring My. Srowary

(the Bank man

ні

nges

vin 1962

now Tervin)

in Shangnai now

has proposed max Thu. Kendall,

VI appromimi by the

ermine

Mwww

spent

I as wr

NOTHING TO BE WRITTEN IN THIS MARGIN

[

BA (2029)

Reference

Fing B

C.o.'s

mw 4 me

A meunang

as at para 4 of H.12. Fu. No. 789 to

Sumard define the moskey,

mating si

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clear

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was unwitting.

4.

This afremom g hul

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meeting

with

Mr. Hodgkin, Dueisen Memager of 1.6.6 in honom, my. Porro 1.6.7. Finsame

Director Hong Kong (on lema) and

Mo. Thompson of the HOR. Burke All

expressio

a string preforme for the course proposed Buy Peting / para. I

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sni gux

kusim vi

2

the present atmosphin

mai vomi Mi Suy c

and fumée and

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RECEIVED IN

|ARCHIVES No. 31/ - 9 JUN 1967

FC:

1

Mr Self manage

atting @ 7.30.

To be Present

Fc. $14

Reference... Fc.

4.R.58.C Shaughan.

M Bolland

Mr. Denen.

Mr. Shawland

1

12

Phone Mincing Lens 585.

Сложно (Overseas Managee

)

Mr. Hodgkin

Portar

з

1.0.1.

On

"M. Jum

Comutar Dept.

(in leave from to Eafft.

postictive for H.4.0

Mr. Thompson-

A confersion of H.K.S.B. c.

opology for New has been demanded authorities before Ath. Self

enin 1955

dew andid

car

biff has inserted that

allyed emmer.

1. C. 1.

creuits

by

HKSBC.

and

thisine bustoms

bima"

leave bhina

original demand

в не Chinne produca

and seruild is leking RAND 650

Qua

evi duw

have today revived a saded

this rubject.

manage from Hongking

1949.

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