attached
Jhalaw
see 18
Cypher/Cat A
CONFIDENTIAL
IMMEDIATE HONG KONG TO FOREIGN OFFICE
Telno 76
CONFIDENTIAL
8 June 1967
RECEIVED
APCH $12.31
IG COFF
FCSKA
1.". see 18
Addressed to Foreign Office telegram No. 76 of 8 June, Repeated for
information to Peking.
8
1. Hong Kong telegram No. 74: ICI Money.
2.
The Hong Kong Bank Headquarters have again spoken to Self on the
telephone. He reported that the Chinese obviously knew that Bowling had
handed the parcel to the Bank in Shanghai and that they had handed it to
the Consulate. They also appear to know where the money came from
originally.
3. Self has been summoned to a further interrogation on
9 June and asked his Headquarters to obtain details from ICI as to how
the mone; had been used. Kendall is unwilling to give this information
until he knows your views on the matter. Self has therefore been
instructed to tell the Chinese at his next interrogation that ICI are
looking into the matter.
4. The only optimistic note is that Self's wife has now been given an
exit visa.
Trade Commissioner
Sent 09252 8 June
Recd 09272 8 June
DEPARTLENTAL DISTRIBUTION
F.0.
F.E.D.
Commonwealth Trade Dept.
J.R.D.
C.O.
F.E. & P.D.
D.T.D.
NNNNN
Commonwealth Financial Policy
Dept.
CONFIDENTIAL
ADVANCE COPIES SENT
Cypher/Cat A
IMMEDIATE
CONFIDENTIAL
PRKING TO FORBIGN OFFICE
Telno. 656 8 June, 1967
ECEIVED IN ~HIVES No.31.
JUN 1967
FCS/4
CONFIDENTIAL
મ
+
see
10
Addressed to Foreign Office telegram No. 656 of 8 June. Repeated for
information to: Hong Kong for Trade Commissioner.
Hong Kong telegram No. 789
fa for
[die]:
1.C.I. Money.
If
In the circumstances I think Manager Self should be advised inform
Chinese authorities that his predecessore accepted this private deposit,
later handed it over to our office in Shanghai and leave it at that. We
could advise Self to this effect by telephone if necessary It would then
be up to the Chinese to approach 1.0.1. and/or this office if they
wished. approached we should reply on same lines as Ï.C.I. (see para-
graph 4 of telegram under reference), Nevertheless I think it important
that Peters should not (repeat not) be mentioned by name as the Chinese
might take this opportunity to expel him. Will Hong Kong please make
this point to [gp.undec. ?Kendall).
2.
Please advise urgently whether you wish us to act
in this way.
Mr. Hopson
Bent 0250z 8 June Rood. 07282 8 June
DEPARTMENTAL DISTR IBIIT TON
2.0.
F.B.D.
Consular Dept.
C.0.
P.E.4 P. Dept.
CONFIDENTAI,
AIWANCE COPIES SENT
Cypher
CONFIDENTIAL
INWARD TELEGRA}!
+
TO THE COMMONWEALTH OFFICE (The Secretary of State)
FROM HONG KONG (Sir D. Trench)
D. 7 June, 1967. R. 7
; RECEIVED IN ¡ARCHIVES No.31
13 JUN 1987
FC5/4
0950z
ра.
see 18
INKEDIATE CONFIDENTIAL
No. 789.
Addressed to Foreign Office No. 74. Repeated
Peking No. 319. (Please pass IMMEDIATE
to both).
From Trade Commissioner.
Peking telegram No. 650.
I.C.I. Money.
Porter, the local I.C.I. Finance Director, is in England at present and
can give you some of the background. He can be contacted through Pacific
Department, I.C.I. headquarters.
2.
Bowling, formerly I.C.I. Shanghai manager, is in Hong Kong. He has
assured Kendall (local 1.G.I. chairman) that the money amounting to Yuan
9,445.85 was legitimately obtained from commissions received after
signing closure documents. The parcel of money was deposited with the
bank because the latter were not allowed to open current accounts at the
time.
now
3. Local I.C.I. records of the time are sketchy by but Kendall has shown
me a letter of May 1964 to First Secretary Ross (then passing through
Hong Kong) clearly recording the understanding of 1.0.1. that the money
was
the officially obtained, and "is available for our use, general
understanding being that it should be used by personnel visiting China".
Lt. As seen from here the most important thing is that Peters in Peking
tells the same story to the Chinese as Kendall in Hong Kong. So far
Kendall has not heard from the Chinese. Unless you see overriding
objection Kendall proposes (if approached) to say:-
(a) that the money was legitimately obtained;
(b) that I.C.I. were genuinely under the impression
that it could legally be used for their expenses in China.
5.
Kendall has also told me that if the Chinese really pressed them, or if
self's departure permit revolved around this matter, he would consider
recommending to London that
CONFIDENTIAL
/I.C.I.
CONFIDENTIA
It
I.C.I. should refund the money. If it really came to it, I.C.I. would
take this step provided the Chinese recognise the British firm broke the
Chinese exchange regulations upwittingly, and provided there was no
question of inflated fines and so on.
(Passed as requested)
Distribution
Copies also sent to:-
-
H.K. WID 'C' Aid Dept.
Foreign Office (Par Eastern Dept.
H
*
==
n
Mr.
de la Mare
Mr. Bolland
H
H
Mr. Wilson
[1]
Mr. Denson
CONFIDENT
En Clair
IMMEDIATE
Telno. 74
UNCLASSIFIED
#F.EIVED IN
[ARCHIVES No.3
- 8 JUN 1967
HONG KONG TO FOREIGN OFFICE-
7 June 1967
FC5/41F
Addressed Foreign Office telegram No. 74 of 7 June, Repeated for
information to Peking.
8
From Trade Commissioner.
18
Peking telegram No. 650:
7
xe
I.C.I. Money.
да
Porter, the local I.C.I. Finance Director, is in England at present and
can give you some of the background. He can be contacted through Pacific
Department, I.C.I. Headquarters.
2. Bowling, formlerly I.C.I. Shanghai Manager, is in Hong Kong. He has
assured Kendall (local I.C.I. Chairman) that the money amounting to yuan
9445.85 was legitimately obtained from commissions received after
signing closure documents. The parcel of money was deposited with the
Bank because the latter were not allowed to open current accounts at the
time.
3. Local I.C.I. record of the time are sketchy by now, but Kendall has
shown me a letter of May 1964 to First Secretary Ross (then passing
through Hong Kong) clearly recording the under- standing of I.C.I. that
the money was official obtained, and "is available for our use, the
general understanding being that it should be used by personnel visiting
China".
As seen from here the most important thing is that Peters in Peking
tells the same story to the Chinese as Kendall in Hong Kong. So far
Kendall has not heard from the Chinese, Unless you see overriding
objection Kendall proposes (if approached) to say:-
(a) That the money was legitimately obtained.
(b) That I.C.I. were genuinely under the impression that it could
legally be used for their expenses in China.
5. Kendall has also told me that if the Chinese really pressed them of
if Self's departure permit revolved around this matter, he would
consider recommending to London that I.C.I. should refund the money. If
it really came to it 1.C.I. would take this step provided the Chinese
recognize that the British firm broke the Chinese exchange regulations
unwittingly, and provided there was no question of inflated fines and.
so on.
Yr. Hannam
DEPARTMENTAL DISTRIBUTION
Sent
11452/7 June 1967
Reod.
11552/7 June 1967
ADVANCE COPIES SENT
F.0.
F.E.D.
Consular Dept.
C.O. F.E.P.D.
SSSSS
|
Cypher/Cat A
CONFIDENTIAL
IMMEDIATE PEKING TO FOREIGN OFFICE
Telno 650 6 June, 1967
CONFIDENTIAL
COPY
18
see
त
ра
FC5/41
Addressed to Foreign Office telegram No. 650 of 6 June Repeated for
information to: Hong Kong (for Political Adviser).
My telegram No. 415 to Hong Kong (No. 619 to Foreign
Office).
4
Manager Self of the Shanghai Branch of the Hong Kong Bank has had
further interviews with the Chinese Customs and although they have
refused to give him information about "illegal" actions of the bank,
they directed him to look into "Imperial Chemical Industry Deposit".
2.
Self has no records of this but has been told by Mr. Stewart now in
retirement in Hong Kong that when he was Manager in Shanghai in 1964, he
handed an I.C.I. parcel to the British Officer there.
3. Self asked Peters about this item on the telephone this morning.
Peters denied knowledge of this deposit but promised to look in our
records.
4. Peters took over from Ross in May 1965 a parcel for I.C.I. and handed
it to McBain and Cheetham in September 1965. The parcel contained at
that time about 5,000 (five thousand) Yuan which I.C.I. used to help
defray local expenses of their Tientsin Exhibition.
5. From 1964 records I see that a sum of 9445.85** had been carried to
Peking from Shanghai by one of our Dip- Iomatic Officers and that I.C.I.
visitors to China had drawn reasonable amounts from this money towards
local expenses in China, It was finally all used up in 1965, the balance
being handed over to I.C.I. as detailed in paragraph ↳ abově.
6. I should be grateful if this matter could be urgently discussed both
in London and Hong Kong with senior members of I.C.I. Since Chinese know
something about arrangement which was a private one between Mr. Buchan
of the bank in Shanghai and Mr. Bowling, the last Manager of I.C.I. in
Shanghai, we must assume that they know at least how much money was
involved.
/7. In
CONFIDENTIAL
CONFIDENTIAL
Peking telegram No. 650 to Foreign Office
-2-
7. In order to help Manager Self in his problems we may have to admit to
having taken custody of the I.C.I. parcel
We at the request of Mr. Stewart of the bank in 1964. might if necessary
inform the Ministry of Foreign Affairs and perhaps ask them, on behalf
of I.C.I. what should be done with the money, without revealing that it
has in fact already been handed over to I.C.I. and spent.
8. I can find no record of these transactions having been fully cleared
with you although in a telegram from Hong Kong to Shanghai (No. 2 of 25
February, 1964) repeated to Peking as Foreign Office telegram No. 355 of
25 February there is reference to Consular Department having informed
1.C.I. London that the British Office in Shanghai held a package for
I.C.I.
9.
Grateful for your very urgent advice.
Kr. Hopson Sent 08302 6 June, 1967 Recd 1050Z 6 June, 1967
DEPARTMENTAL DISTRIBUTION
F.O. F.E.P.D.
Consular Dept
C.O. F.E. & P.D.
CONFIDENTIAL
bbbbb
ADVANCE COPIES SENT
M.
Cypher/Cat A
FC5/4
CONFIDENTIAL
PRIORITY PEKING TO FOREIGN OFFICE
fa
COPY OF FOLIO Ĉ
Ino 586
26 May, 1967
CONFIDENTIAL
Addressed to Foreign Office telegram No. 586 of 26 May.
Repeated for information to:
Hong Kong.
We have just received a guarded telephone call from Mrs. Self, wife of
Manager of Hongkong Bank in Shanghai in which she indicated that her
husband and his ohartered bank colleague are being pressed by Chinese to
send telegram of protest to Governor of Hong Kong against actions of
British authorities. We gather that both banks have been covered with
posters and that staff and domestics are on
strike.
2.
We spoke to wives of both managers and they seemed in good heart. We
shall be keeping in touch by telephone.
Mr. Hopson
Sent 1300Z 26 May
Read 06122 27 Hy
DEPARTMENTAL DISTRIBUTION
F.O. F.E.D.
Defence Dept. and P.U.S.P.
Consular Dept. News Dept.
C.0. F.E. and P.D.
muuun
D.T.D.
Haughong Bank informed by phone Chatimes back informed by phone.
shantud Bank had just which had taken only Shanghai.
Schlo
ane werk from
%%
Thanks.
CONFIDENTIAL
妙
FC5/4
Reference
N.S
M. Bollafel
thing King and Shanghain Bucking
Corporation.
I agur entirely
antinely with the Live taken
The de la Mark.
My
ра
pa see
216
6
Elin Juza
folio 18
Mr. Bolland
CONFIDENTIAL
RECEIVE
ARCHIVEN
JUN 1967
FC5/4
Hongkong and Shanghai Banking Corporation
Shanghai Branch
5
Mr. Stewart of the Hongkong and Shanghai Bank in London telephoned me
this morning to say that Mr. Self, the Bank's Manager in Shanghai, has
applied for an Exit Permit to leave the country. He was due to leave
anyway and his successor, Kr. D.G. Lachlan, is already in Shanghai.
2.
Then Mr. Self applied for the Exit Permit he was told that he must
apologise "for the crimes committed by the Bank since 1949". He has so
far not done this. The Bank's headquarters in Hong Kong are seeking the
advice of the Political Adviser to the Governor (Mr. Elliott) but Mr.
Stewart wanted us also to know of this development.
that if Mr. Self and the Bank
The Chinese
3. I told him that my off-the-cuff view was signed such a document, even
under duress, he might get themselves into even more trouble. might then
say that since Self had acknowledged the fact of these alleged crimes he
himself might be held in Shanghai for further investigation and his Exit
Permit might in any case be refused. Alternatively, if he were allowed
to leave, the Chinese might take it out on his successor, Mir. Lachlan.
I said that I would get in touch with Peking and with Kr. Elliott in
Hong Kong and would keep in close touch with Mr. Stewart, but I strongly
advised him to get the most careful legal advice possible from the
Bank's own legal advisers as to the possible implications.
5. I have sent a telegram to Peking repeat to Hong Kong.
ве
Tum
(A.J. de la Mare)
31 May, 1967
Copies to: Mr. Rodgers
Ar. Dery 아무
123
Mrs. Denza
Mr. Hall (Commonwealth Office)
turker informater for
information. for. Hk. Filem 723 Piking the both phown to it.
When Shawand th
Ausart.
Now su H.R. Xd. No. 743. Plean
concert reply with C.o. Patung
vite account
CONFIDENTIAL
The above munte.
Jom Dansnow
M
Cypher/Cat A
CONFIDENTIAL
IMMEDIATE PEKING TO FOREIGN OFFICE
Tel.No. 619
1 June 1967.
!.
RECEIVED IN } ¡AREMIJË, › Noki
-2 JUN 1967
4
FC5/4
CONFIDENTIAL
2
Addressed to Hong Kong teleuram No. 115 of 1 June Repeated for
information to Boreign Office.
Your telegram No. 290 and Foreign Office telegram No. 429 to me Hongkong
Bank in Shanghai,
I spoke to Manager Self this morning who explained that it was the
Chinese Customs who had insisted that he should make a statement
admitting all contraventions of Chinese law committed by the Hongkong
Bank since 1949. I gather he has got this date changed to 1955 and he
has asked them for details of offences which the bank is alleged to have
committed. But they have so far refused to specify any, insisting that
the "confession" must come from him. He offered details of one or two
matters which had been brought to the bank's attention by the Bank of
China and about which the Chinese authorities therefore already knew,
but they said this was not sufficient. He is therefore examining his
files to see if there is anything else which he could produce, but this
process could take a long time. I have advised him to go on insisting
that it is up to the Chinese authorities to give evidence of
contraventions if they believe that some have taken place. You will
remember that they tried the same trick on Brookfield last year but
eventually produced details of the alleged offences.
2.
Meanwhile, Self is in any case not yet in a position to leave as the
handover to the new manager has not yet been approved by the Department
of Industry and Commerce. He has promised to keep in touch with me and
request assistance as necessary.
3. Your paragraph 3. At this stage I do not think we need impute such
far-reaching intentions to the Chinese. We are all suffering from
pin-pricks and restrictions of various kinds at present, e.g. the China
travel service here are refusing to deal with any baggage. They are
choosing to make difficulties wherever they can, mainly I think with the
object of humiliating us. I doubt whether it would be in the Chinese
interest to close the bank down in Shanghai as it is far more useful to
them than it is to the Hongkong Bank it- self.
L. Eventually the Chinese Customs may give details of the contraventions
which they have in mind and some sort of deal may then be possible as it
was in, the case of Brookfield, but all this will take some time,
perhaps weeks, and may involve the payment of a fine,
Mr. Hopson
Sent 0345Z/1 June Recd 06252/1 June
DEPARTMENTAL DISTRIBUTION
F.O. F.E.D.
Consular Dept.
C.O. F.E.& P.D. AHHH
CONFIDENTIAL
ADVANCE COPIES SENT
Mt Seal of Maryling Bank infamed of got of tile by plowe
16.
Ra.
$%
1
CYPHER/CAT A
CONFIDENTIAL
TOP CO
3
FC5/4
PRIORITY FOREIGN OFFICE TO TEKING
429 31 MAY, 1967 (F)
CONFIDENTIAL
ADDRESSED PEKING TELNO 429 OF 31 MAY REPEATED FOR INFORMATION HONG KONG.
YOUR TELNO 586 HONG KONG AND SHANGHAI BANK, SHANGHAI.
HONG KONG AND SHANGHAI BANK LONDON TOLD DE LA MARE TODAY THAT WHEN SELF
APPLIED FOR AN EXIT PERMIT HE WAS TOLD THAT HE MUST APOLOGISE FOR THE
CRIMES COMMITTED BY THE BANK SINCE 1949''. HE HAD NOT SO FAR DONE THIS
AND THE BANK'S HEAD QUARTERS IN HONG KONG WERE SEEKING THE VIEWS OF THE
POLITICAL ADVISER TO THE GOVERNOR.
2. DE LA MARE SAID THAT HIS FIRST REACTION WAS THAT IF SELF 50
APOLOGISED, PARTICULARLY IF IN WRITING, HE AND THE BANK MIGHT GET
THEMSELVES INTO EVEN MORE TROUBLE, EVEN THOUGH IT WOULD BE CLEAR THAT
HIS ''APOLOGY' WAS MADE UNDER DURESS. HE HIMSELF MIGHT BE HELD IN
SHANGHAI FOR FURTHER INVESTIGATION AND HIS EXIT PERMIT MIGHT IN ANY CASE
BE REFUSED. ALTERNATIVELY THE CHINESE MIGHT SEEK TO EXAMINE" HIS
SUCCESSOR, LACHLAN, WHO I UNDERSTAND IS ALREADY IN SHANGHAI.
3. GRATEFUL IF YOU AND POLITICAL ADVISER HONG KONG WOULD TELEGRAPH ANY
DEVELOPMENTS, AND YOUR COMMENTS.
SCPA SENT 12522/31 MAY
DEPARTMENTAL DISTRIBUTION
P.O. P.E.D.
CONSULAR DEPT.
C.O. P.E. & P.D.
CONFIDENTIAL
ра
5
[
Registry No.
DEPARTMENT
F
SECURITY CLASSIFICATION
Top Speret SeeFor
Confidential
- Restricted-
Un Tassified
PRIORITY MARKINGS
(Date)
Immediese
Rootne
}
I
De althed
* Date and tune (G.M.T.) telegram should
reach addressee(s)
.וייו
31/5
PHL
3
х
NOTHING TO BE Written in THIS MARGIN
11552.
31/5/07
PRIVACY MARKING
In Confidence
En Clai Codex Cypher
Draft Telegram to:-
No.
PEKING
429.
(Date) 31/5
And to:-
Repeat to:-
HONG KONG
شاه
Saving to:-
Distribution: DEPT
FE.
Consular F.E.P.D (CO)
Copies to:-
EXAMINED AT /20.0.1/3//1
SIGNATURE
[Security classification]
-if any
[ Privacy any
Privacy marking
[Codeword-if any]
Addressed to
1
CONFIDENTIAL
...............IITIL-ON -IAMA‒‒‒‒‒‒-----------------------------------Ļı
|
PEKING
telegram No.
429
..(date)
TH
And to
repeated for information to
Saving to...
17--11
---------- ----- ----- ---
315
LLIJILLJJ LO
---------------------
POLAD-HONG KONG
---...
--------------` `---`L.....................
-----
--------------------
Ada KANALI- ----- ----- -------------|
Your telegram 586: Hongkong and Shanghai
Bank, Shanghai.
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