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1553671
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Hong Kong - State Department Telegrams
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doc
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1553671
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document
title
Hong Kong - State Department Telegrams
collections
Presidential Country Files for East Asia and the Pacific (Ford Administration)
East Asia and Pacific Country Files
subjects
China
Cambodia
Taiwan
Vietnam
India
Southeast Asia
South Dakota
Vietnam (Republic)
Hong Kong (China)
Commerce
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1553671
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1975-09-30
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9
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1975
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1974-08-01
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8
year
1974
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nara-archive
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The original documents are located in Box 5, folder "Hong Kong - State Department Telegrams" of the Presidential Country Files for East Asia and the Pacific at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. The Council donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 5 of Presidential Country Files for East Asia and the Pacific at the Gerald R. Ford Presidential Library STATE EXPIR Department of State of i MARKS ORLINA AMERICA TELEGRAM STATE DEPT. DECLASSIFICATION REVIEW SECRET 2123 Retain Class'n Change to PAGE 01 HONG K 09271 01 OF 02 2008082 Declassify in part and excise as shown EO 12958, 25X( )( )( ) Declassify After 11 With concurrence (not)(obtained) ACTION $3=30 PS by JL Date 8/3/00 INFO OCT-01 ISO-00 1031 W 123831 R 2003492 AUG 74 FM AMCONSUL HONG KONG DECLASSIFIED visit 8/3/09 TO SECSTATE WASHDC 1930 E.O. 12958, SEC. 3.5 INFO USLO PEKING STATE DEPT, GUIDELINES state AMEMBASSY TAIPEI BY GG NARA, DATE 4/23/01 SECRET SECTION 1 OF 2 HONG KONG 9271 '748 AUG 20 AM 40 SITUATION ROOM WHITE HOUSE EXDIS F.O. 116521 XGDS-2 TAGS: PINT PFOR CH TW SUBJI GRC DISCUSSION RE FUTURE OF TAIWAN SUMMARY. ACCORDING TO A CHINESE -AMERICAN PROFESSOR WITH PRESUM- ABLY GOOD CONNECTIONS IN TAIWAN, SOME GRC OFFICIALS IN PRIVATE CONVERSATIONS ARE INDICATING HEIGHTENED CONCERN OVER POLITICAL FUTURE OF TAIWAN AS A RESULT OF U.S. POLITICAL DEVELOPMENTS. THESE OFFICIALS SEE THE COURSE OF U.S.-RRC RELATIONS AS TRREVERSIBLE AND THUS BELIEVE THAT IT IS URGENT, BEFORE GRC POSITION ERODES FURTHER, TO DEVISE AN ARRANGEMENT WHEREBY TATWAN'S STATUS QUO CAN BE ASSURED VIS-A-VIS THE PRC. IN THIS CONTEXT A ROUGHLY SKETCHED FORMULA HAS BEEN AIRED IN PRIVATE CONVERSATIONS THAT WOULD INVOLVE MULTILATERAL NEGOTIATIONS BETWEEN PEKING, TAIPEI, WASHINGTON AND MOSCOW, END SUMMARY. 1. MICHAEL YING-MAO KAU, A TAIWAN BORN BROWN UNIVERSITY POLITICAL SCIENCE PROFESSOR NOW TRANSITING HONG KONG AFTER PARTICIPATING AS AN INVITEE TO A RECENT TAIWAN DEVELOPMENT CONFERENCE, RECOUNTED TO CONGENOFFS AUGUST 15THE GIST OF SOME PRIVATE CONVERSATIONS HELD A FEW DAYS PREVIOUSLY BY GRC OFFICIALS RE U.S. -PRC -TAIWAN RELATIONS. KAU, WHO LAST YEAR VISITED PRC AS A MEMBER OF CHINESE AMERICAN SCHOLARS GROUP, SAID A NUMBER OF HIGH LEVEL GRC OFFICIALS WERE KNOWN TO HIM THROUGH HIS TAIWAN A. FORD BACKGROUND AND SCHOLARLY RESEARCH TIES. THESE OFFICIALS (KAU MENTINED THSTGRC MINISTER OF EDUCATION, GOVERNMENT INFORMATION GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT JERANTHORIZATION OF THE EXECUTIVE SECRETARY 5 FORM DS-1652 9-66 STATE SAMPLE Department of State SELING , TELEGRAM I of SECRET PAGE 02 HONG K 09271 01 OF 02 2008082 OFFICE DIRECTOR FREDERICK CHIEN, AND SEVERAL HIGH KMT OFFICIALS INVOLVED IN PRC RESEARCH), WERE QUITE INTERESTED IN HEARING WHAT PRC OFFICIALS, SUCH AS VICE FOREIGN MINISTER CHIAO kuan-hua, HAD SATD ABOUT TAIWAN DURING THAT VISIT (SEE AMCONGEN MEMCON OF JULY 28 WITH VICTOR LI RE CONVERSATION WITH CHIAO KUAN=HUA). KAU FOUND MOST OF THESE HIGH LEVEL GRC OFFICIALS PRIVATELY QUITE OPEN ABOUT THEIR INTEREST IN PRC ATTITUDES AND ALSO WELL INFORMED AND REALISTIC ABOUT PRC INTERNAL POLITICAL DEVELOPMENTS. (HE NOTED THIS WAS NOT THE CASE WITH LOWER LEVEL GRC FUNCTIONARIES WHO TENDED TO PARROT USUAL LINE ABOUT "ABSOLUTELY NO COMPROMISE WITH COMMUNISTS" AND "PRC LEADERSHIP IS COLLAPSING".) 2. KAU SAID THAT RECENT TRANSITION IN U.S. PRESIDENCY HAD SEVERAL JOLTED GRC OFFICIALS AND ADDED GREAT URGENCY TO THEIR CONCERN ABOUT FUTURE OF TAIWAN. NEWS PHOTOS OF PRCLO CHIEF HUANG CHEN WITH PRESIDENT FORD AND OFFICIAL U.S. INDICATIONS THAT U.S. POLICY TOWARD PRC UNDER SECRETARY KISSINGER WOULD CONTINUE UNCHANGED DEALT A PARTICULARLY HARD BODY BLOW TO THEM. IN WAKE OF THESE DEVELOPMENTS KAU SAID HE WAS PRESENT IN PRIVATE DISCUSSIONS LAST WEEK IN WHICH SEVERAL HIGH LEVEL GRC OFFICIALS FWHOM KAU DID NOT CARE TO IDENTIFY) SPOKE ABOUT LATEST U.S. POLITICAL DEVELOPMENTS AND THEIR IMPLICATIONS FOR TAIWAN. THEY SAID THAT THE COURSE OF U.S. -PRC RELATIONS WAS NOW TRREVERSIBLE. SINCE IT WAS CLEAR THAT U.S. DIPLOMATIC RECOGNITION OF THE PRC WILL OCCUR EVENTUALLY, THE PROBLEM NOW WAS TO KEEP TATWAN FROM BEING ABSORBED COMPLETELY INTO THE PRC AND FOR THIS PURPOSE SOME SORT OF U.S. COMMITMENT WAS ESSENTIAL. THIS MEANT DEVISING, BEFORE THE GRC POSITION WAS COMPLETELY ERODED, AN ARRANGEMENT WHEREBY AT LEAST A MAJOR PORTION OF TAIWANIS PRESENT STATUS QUO COULD BE ASSURED. IN THIS CONTEXT THE OFFICIALS IN THEIR DISCUSSIONS AIRED A ROUGH FORMULA THAT THEY ENVISAGED AS FEASIBLE, THE FORMULA WOULD MEET BOTH THE OBJECTIVE OF PRESERV- ING A MEASURE OF THE PRESENT STATUS QUO FOR TAIWAN AND YET PROVIDE DESIRABLE FEATURES FOR EACH OF THE PARTIES HAVING DIRECT INTEREST IN TAIWAN OR THAT COULD AFFECT THE STATUS OF TAIWAN, 3. THE CORE OF THE FORMULA AS AIRED BY THESE OFFICIALS WAS TO CONVENE A CONFERENCE INVOLVING THE PRC. THE GRC, THE U.S. AND THE USSR. THE RESULT OF THE CONFERENCE WOULD BE ALREADY PREORDAINED IN THE SENSE THAT ALL FOUR PARTIES WOULD AGREE TO FORMALIZE A COMMON UNDERSTANDING ABOUT TAINAN. THIS BASIC UNDERSTANDING FORD B. NOT TO BE REPRODUCED THOUT SREREOTHORIZATION O' HE EXECUTIVE CRALO CRETARY LIBRARY FORM 9-56 DS-1652 DEPARTMENT STATE Department of State of / AMERICA TELEGRAM SECRET PAGE 03 HONG K 09271 01 OF 02 200808Z WOULD HAVE ADVANTAGES FOR EACH OF THE PARTIES AND ESSENTIALLY WOULD INCORPORATE THE FOLLOWING: THE GRC WOULD MAKE SOME FORMAL CONCESSION TO THE PRC THAT WOULD ACKNOWLEDGE THAT THERE IS BUT ONE CHINA WITH PEKING BEING SOVEREIGN AND HOLDING CERTAIN FOREIGN AFFAIRS JURISDICTION. BOTH THE GRC AND PRC WOULD RENOUNCE ANY USE OF FORCE AGAINST THE OTHER. FOR THE GRC THIS WOULD MEAN GIVING UP ALL EFFORTS TO REGAIN THE MAINLAND, CONDUCT RAYDS, ETC. SUCH ACTS WOULD CONSTITUTE TAIPEI'S ACCEPTANCE AND RECOGNITION OF THE PRIMACY OF PEKING IN SUCH INTERNATIONAL FORUMS AS THE UN. HOWEVER, KAU INDICATED THAT THERE WAS NO SPELLING OUT IN THE DISCUSSION WHAT SOVEREIGNTY TAIWAN WAS WILLING TO GIVE UP. TAIWAN WOULD RETAIN A LARGE MEASURE OF POLITICAL AUTONOMY AND ENOUGH OF THE PRESENT STATUS QUO TO MAINTAIN ITS ECONOMIC VIABILITY AND PRPSPERITY, BUT THE DEGREE OF AUTONOMY WOULDBE SHORT OF INDEPENDENCE. THE U.S. COMMITMENT TO ASSURE PRESERVATION OF THE PRESENT STATUS OF TAIWAN WOULD BE VITAL AND WOULD BE ASSURED BY THE US MAINTAINING A TOKEN OR SYMBOLIC U.S. MILITARY PRESENCE IN TAIWAN, THE U.S. COULD ARRANGE A SWITCH WITH A LIAISON OFFICE IN TAIPEI AND AN EMBASSY IN PEKING. U. U.S. -PRC RELATIONS WOULD THEN BE NORMALIZED, BUT WITH A LIAISION OFFICE, TIAPEI WOULD HAVE SOMETHING MORE THAN A MERE U.S. CONSULATE CIN THIS CONNECTION IT WAS NOTED THAT SOUTH AFRICA, DESPITE VERY LIMITED DIPLOMATIC TIES, HAS PROSPERED. NEVERTHELESS, THERE WAS MUCH CONCERN VOICED ABOUT THE FORTHCOMING ESTABLISHMENT OF PHILIPPINE -PRC DIPLOMATIC TIES). AS FOR MOSCOW, IT WOULD CEASE SOVIET NAVAL PASSAGE THROUGH TAIWAN STRAITS. THE OFFICIALS REASONED THAT THE SOVIET LONG-TERM INTEREST IS TO REACH SOME ACCOMMODATION WITH CHINA, FORD & GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT SECREUTHORIZATION OF THE EXECUTIVE SECRETARY FORM DS-1652 9.66 ARTME on STATE UNITED Department of State TELEGRAM / OF SECRET 2041 PAGE 01 HONG K 09271 02 OF 02 200617Z 16 ACTION SS-30 INFO OCT-01 IS0-00 1031 W 123175 R 2003492 AUG 74 PM AMCONSUL HONG KONG TO SECSTATE WASHDC 1931 INFO USLO PEKING AMEMBASSY TAIPEI s E C R E T SECTION 2 OF 2 HONG KONG 9271 EXDIS BY AGREEING NOT TO TRANSIT SOVIET SHIPS THROUGH THE TAIWAN STRAITS AND IN JOINING THE UNDERSTANDING ON TAIWAN, THE SOVIETS COULD LAY GROUNDWORK FOR SUCH ACCOMMODATION WITH CHINA, MITIGATING PEKING'S EVER-PRESENT CONCERN ABOUT RUSSIAN INTENTIONS. 4. AFTER RELATING HOW THIS FORMULA WAS DISCUSSED, KAU ASKED CONGENOFFS VIEWS ABOUT FEASIBILITY OF SUCH A CONFERENCE SCENARIO, IN EXPRESSING PERSONAL VIEWS, CONGENOFFS SAID INTITIAL IMPRESSION OF SCENARIO WAS THAT PEKING'S ATTITUDE WOULD POST THE MAJOR QUESTION MARK. IT SEEMED HIGHLY UNLIKELY PRC WOULD WANT TO DEAL SOVIETS IN ON MATTER WHICH PEKING HAS ALWAYS INSISTED IS SOLELY A CHINESE AFFAIR. KAU MENTIONED THAT WHILE TAIPEI HAS CONSISTENTLY SAID THERE COULD BE NO BILATERAL DISCUSSIONS WITH MOSCOW, THE GRC OFFICIALS APPARENTLY SAW NO PROBLEM DEALING WITH THE SOVIETS IN THE CONTEXT OF A CONFERENCE. 5. COMMENT. JUDGING BY HIS REPUTATION WITH OTHER HONG KONG CHINA-WATCHERS AND PAST ASSOCIATIONS WITH CONGENOFFS, KAU APPEARS TO A SERIOUS AND RESPONSIBLE SCHOLAR WITH PRESUMABLY GOOD CONNECTIONS IN TAIWAN, WE DOUBT THAT KAU WAS ATTEMPTING TO FLOAT GRC TRIAL BALLON IN THE SENSE OF ELICITING U.S. RESPONSE HIMSELF. AS INDICATED, THE VIEWS EXPRESSED BY CONGENOFFS WERE BRIEF, OFF-HANDED AND NONSUBSTANTIVE AND KAU MADE NO EFFORT TO PURSUE THE SUBJECT. WE BELIEVE KAU WAS RELATING ACCURATELY THE GIST OF PRIVATE CONVERSATIONS HE HEARD IN TAIPEI, FORD LD NOT TO BE REPRODUCED WITHOUT- ATHORIZATION OF THE EXECUTIVE SECRETARY LIBRARY FORM / of and Department of State of / AMERICA UNITED TELEGRAM SECRET PAGE 02 HONG K 09271 02 OF 02 2006172 AND NOTE THESE CONVERSATIONS APPARENTLY FOCUSED ON SOME OF THE SAME BASIC CONCERNS AS DESCRIBED IN TAIPEI 5091, WE WOULD DEFER TO EMBASSY TAIPEI'S JUDGEMENT AS TO WHAT EXTENT VIEWS REPORTED BY KAU MIGHT BE EITHER REPRESENTATIVE OR ATYPICAL OF GRC ATTITUDE. WITH REGARD TO MULTILATERAL FORMULA, IT APPEARS TO US THAT PEKING WOULD BE UNALTERABLY OPPOSED TO ANY SOVIET PARTICIPATION REGARD ING THE STATUS OF TAIWAN BUT WE FIND RATHER INTERESTING THAT SOME CHINESE OFFICIALS IN GRC ARE APPARENTLY CONSIDERING SOME FORM OF BARGAINING WITH PRC EVEN THOUGH THEIR CURRENT FORMULA SEEMS FARFETCHED. CROSS LETEC GERALD ? LIBRARY FORD N.OT TO BE REPRODUCED THOUT SUCAR THORIZATION 0 THE EXECUTIVE SECRETARY 2 NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 012727 REASON FOR WITHDRAWAL National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME AMCONSUL HONG KONG RECEIVER'S NAME SECSTATE WASHDC TITLE Peking's View of Sino-Indian Relations CREATION DATE 10/25/1974 VOLUME 13 pages COLLECTION/SERIES/FOLDER ID 032400174 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 5 FOLDER TITLE Hong Kong - State Department Telegrams DATE WITHDRAWN 04/27/2001 WITHDRAWING ARCHIVIST GG 1 DECLASSIFIED, with portions exemptal E.O. 12958, SEC. 3.5 TATE DEPT, GUIDELINES state visit 8/2/00 BY. 66 . NARA, DATE 4/27/01 OF STATE WH Department of State AMERICA TELEGRAM of SECRET 7961 EXPIR EXE-M PAGE 01 HONG K 11684 01 OF 04 250623Z 11 ACTION SS-25 INFO OCT-01 ISO-00 1026 W 117254 P R 250500Z OCT 74 FM AMCONSUL HONG KONG TO SECSTATE WASHDC PRIORITY 2652 INFO AMEMBASSY DACCA AMEMBASSY KATHMANDU AMEMBASSY ISLAMABAD AMEMBASSY MOSCOW AMEMBASSY NEW DELHI AMEMBASSY TAIPEI AMEMBASSY TOKYO USLD PEKING CINCPAC HONOLULU HI S-F GRET SECTION 1 OF 4. HONG KONG 11684 EXDIS NOFORN CINCRAC FOR POLAD FORD & E.O. 116521 XGDS-2 TAGS: PFOR CH IN UR XC us GERALD LIURARY SUBJ: PEKING'S VIEW OF SINO-INDIAN RELATIONS REF: NEW DELHI 13214 SUMMARY. CONGEN HAS OBTAINED THE SUBSTANCE OF PRC VIEWS ON CURRENT SINO-INDIAN RELATIONS AS EXPOUNDED RECENTLY BY SENIOR PRC OFFICIALS TO FOR COMMUNICA- TION TO INDIAN OFFICIALS. WE ARE REPORTING THIS BY TELEGRAM IN FULL BECAUSE THERE IS SUCH A LACK OF INFORMATION ON CHINESE ATTITUDES ON THE SUBJECT AND BECAUSE IT HELPS MAKE CLEARER THE EXTENT OF PEKING'S CONCERN OVER SIKKIM, THIS INFORMATION INDICATES CLEARLY THAT PEKING HAS BEEN MORE ACTIVE AND POSITIVE IN CARRYING ON A BILATERAL DIALOGUE WITH INDIA AIMED AT IMPROVING PEKING- NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET DECLASSIFIED, with intions exempted E.O. 12958, SEC. 3.5 STATE DEPT, GUIDELINES, State visit 8/2/00 BY GG , NARA, DATE 4/27/01 EXPIN A OF STATE Department of State on I UNITED AMERICA TELEGRAM SECRET PAGE 02 HONG K 11684 01 OF 04 250623Z NEW DELHI RELATIONS THAT WE HAVE BEEN AWARE HERETOFORE. THE CHINESE ARE INDEED UPSET OVER INDIA'S MOVE ON SIKKIM, VIEWING IT AS HAVING DESTABILIZED THE POLITICAL RELATIONSHIPS BETWEEN HIMALAYAN STATES AND SERIOUSLY JEOPARDIZED THE QUIET SINO- INDIAN BORDER SITUATION AS WELL. HOWEVER, THE CHINESE ARE LEAVING THE DOOR OPEN FOR FUTHER DIALOGUE. MOST SIGNIFICANTLY WAS GIVEN THE CLEAR MESSAGE THAT MAIN DRIVING FORCE BEHIND CHINA'S EFFORTS TO REACH BETTER UNDERSTANDING WITH INDIA, AS IS THE CASE FO RAPPROACHEMENT EFFORTS VIS-A-VIS U.S. AND JAPAN, IS RELATED TO THE CHINESE LEADERSHIP SUCCESSION ISSUE. WHEREAS OLD GENERA- TION PRC LEADERS HAVE BEEN ABLE TO MANAGE AND CONTRBB CHINESE ANTI- FOREIGN FEELINGS, THERE IS CONCERN WHETHER THE NEW SUCCESSORS WILL HAVE SAME ABILITY AND WISDOM. HENCE THE NECESSITY ZQFORE THE OLD LEADERS PASS FROM THE SCENE TO ACHIEVE BETTER SPECIFIC INTERNATIONAL UNDERSTANDING, END SUMMARY. 1. DURING OCTOBER 15 AND 16, CONVERSATIONS WITH U.S. CONGENOFFS RELATES SUBSTANCE OF WHAT WAS TOLD ON OCTOBER 12=13 FOLLOWING LATTER'S EXIT FROM MONTH-PLUS VISIT TO PRC. HAS FOR SEVERAL YEARS BEEN INVOLVED IN PERSONAL EFFORT TO PROMOTE BETTER SINO-INDIAN RELATIONS. DURING VISIT, AS CASE PREVIOUS SOJOURNS, SHE DISCUSSED SUBJECT AT LENGTH WITH SENIOR PRC OFFICIALS, INCLUDING ONE SESSION WITH VICE PREMIER TENG KSIAO-PING AND TWO SESSIONS WITH VICE FOREIGN MINISTER CHIAO KUAN-JUA AT WHICH NUMBER RESPONSIBLE MFA OFFICIALS WERE PRESENT. SHE ALSO HELD DISCUSSIONS WITH TENG YING-CHIAO (MADAME CHOU EXCES EN-LAI) AND NPC VICE CHAIRMAN SOONG CHING-LING. 2. IS OLD FRIEND* OF AND REVEALED HE HIMSELF HAS HAD INVOLVEMENT IN PROMOTING SINO-INDIAN DIALOGUE BY SERVING AS LOCAL HONG KONG CONDUIT. R. FORD MENTIONED ALSO THAT LATE LAST YEAR HE WAS HONG KONG CONTACT BY WHICH CHINESE SENT FEELERS RE PROPOSED PRC PING PONG TEAM VISIT (REFTEL). GERALD LIBRARY IDENTIFIED HONG KONG NCNA DEPUTY EDITOR-IN-CHIEF CHIANG CHING-CHAO (WHO NOT TO BE REPRODUCED 'ITHOUT THE AUTHORIZATION C THE EXECUTIVE SECRETARY SECRET OF STATE Department of State of STATE UNITED AMERICA TELEGRAM SECRET PAGE 03 HONG K 11684 01 OF 04 250623Z RECENTLY RETURNED TO PRC) AS CHINESE REP WHO APPROACHED TO SEEK INDIAN ASSURANCES THAT MATTER WOULD BE HANDLED SMOOTHLY. ADDED THAT HE AND PREVIOUS HONG KONG INDIAN COMMISSIONER WERE PERSONALLY AT ODDS AND MOST OF WHAT HE TOLD U.S. CONGENOFFS WAS NOT KNOWN TO INDIAN COMMISSION. THUS HAS BROAD BACKGROUND RE SINO-INDIAN RELATIONS AS WELL AS CLOSE RAPPORT WITH WHO HE SAID DOUBTLESSLY WOULD RELAY MAIN POINTS EXETS EXETS EXCES OF CONVERSATIONS (AS SHE HAS IN PAST) TO INDIAN AUTHORITIES, POSSIBLY TO MRS. GANDHI HERSELF, DURING CURRENT TRAVEL THROUGH INDIA. FORD a GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET on STATE Department of State UNITED AMERICA TELEGRAM STATES or SECRET 0530 RAGE 01 HONG K 11684 02 OF 04 260301Z 64 ACTION 88-25 INFO, OCT-01 ISO-00 1026 W 000656 P R 250500Z OCT 74 FM AMCONSUL HONG KONG TO SECSRATE WAS DC PRIORITY 2653 INFO AMEMBASSY DACCA AMEMBASSY KATMMANDU AMEMBASSY ISLAMABAD AMEMBASSY MOSCOW AMEMBASSY NEW DELHI AMEMBASSY TAIPEI AMEMBASSY TOKYO USLQ PEKING CINCPAC HONOLULU HI up ECRE I SECTION 2 OF 4 HONG KONG 11684 EXDIS NOFORN CINCPAC FOR POLAD 3. WITH REGARD TO THE SINO-INDIAN SCENARIO v SAID VICE FOREIGN MINISTER CHIAO AND VICE PREMIER TENG BOTH MENTIONED THAT A HIGH LEVEL DIALOGUE HAD BEEN UNDERWAY FOR SOME TIME BETWEEN NEW DELHI AND PEKING WITH THE COMMUNICATION BEING TRANSMITTED BY FOREIGN VIP'S AS THEY TRAVELED THROUGH INDIA AND EXPIN PRC AND BACK AGAIN. DURING PAST YEAR MRS, GANDHI SENT WORK TO PRC THROUGH TWO DIFFERENT AFRICAN CHIEFS OF STATE AND SEVERAL EUROPEAN MINISTERS ABOUT DESTRABILITY OF PRC AND INDIA IMPROVING RELATIONS. CHINESE HAD UTILIZED SAME CHANNELS TO RESPOND IN FORD POSITIVE WAY. IN ONE MESSAGE TO PREMIER CHOU EN-LAI, MRS, a GANDHI STATED THAT SINO-INDIAN BORDER QUESTION WAS VERY COMPLICATED PROBLEM, RESOLUTION OF WHICH WOULD TAKE MUCH TIME. GERALD LIBRARY SHE MENTTONED CERTAIN DOMESTIC DIFFICULTIES AND SPOKE OF BETTER UNDERSTANDING AND WARMER RELATIONS BENEFITTING BOTH COUNTRIES. EMPHASIZING HER VIEW THAT KEY POINT WOULD BE FOR BOTH SIDES TO NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET OF STATE Department of State of STATE UNITED AMERICA TELEGRAM SECRET PAGE 02. HONG K 11684 02 OF 04 260301Z WORK TO RESTORE MUTUAL CONFIDENCE, SHE PROPOSED AS ONE STEP THE RESUMPTION OF AMBASSADORIAL RELATIONS. CHOUIS REPLY LAID STRESS ON FACT THAT BORDER HAD BEEN QUIET SINCE 1962 AND SAID THEREFORE TWO COUNTRIES NEED NOT SETTLE BORDER PROBLEMS BEFORE MOVING ON TO OTHER MATTERS. HE AGREED IT WOULD BE IN MUTUAL INTERST TO ESTABLISH GREATER SENSE OF CONFIDENCE AND EXPRESSED WILLINGNESS EXC-S EXC-S TO PROCEED ACCORDINGLY. USING THE JUNE 1974 VISIT TO THE PRC OF THE DR. D. S. KOTNIS MEDICAL GROUP AS A DEVICE THE CHINESE SUGGESTED INCLUSION OF AN INDIAN REP AUTHORIZED TO DISCUSS BILATERAL MATTERS WITH CHINESE. INDIANS ACCORDINGLY INCLUDED MP MUKUND RAI VYAS, A GANDHI CONFIDANT. CHINESE ACCORDED GROUP HIGH LEVEL ATTENTION (HONG KONG 6955) AND PARTY VICE CHAIRMAN VEH CHIEN-YING TOLD MP THAT CHINA WAS PREPARED TO TAKE STEP OF PROMOTING BETTER UNDERSTANDING BY RESUMING AMBASSADORIAL RELATIONS. YEH SAID THAT SINCE DELHI'S WITHDRAWAL OF INDIAN AMBASSADOR IN 1962 HAD PRECEDED THE PRC AMBASSADOR'S WITHDRAWAL BY SIX MONTHS, INDIAN OUGHT TO GIVE CHINA SOME "FACE" BY SENDING THE INDIAN AMBASSADOR BACK FIRST WITH THE SAME SIX MONTHS LEAD. YEH LATER MODIFIED THIS BY SAYING THREE MONTHS LEAD WOULD BE ENOUGH. THIS AS COMMUNICATED BACK TO NEW DELHI, AND APPARENTLY THE PROPOSAL WAS ON TRACK BUT NOTHING SINCE HAS HAPPENED. COMMENTED THAT THE CHINESE SUSPECT CAND HE AND AGREE) THAT THE SOVIETS SOME MONTHS AGO BECAME AWARE OF THE IMPROVING SINO-INDIA DIALOGUE AND SUCCESSFULLY PUT PRESSURE, PERHAPS ECONOMIC OR POLITICAL, UPON INDIA TO DESIST OR AT LEAST SLOW DOWN. 4. THE CHINESE BROUGHT UP THE INDIAN NUCLEAR TEST, NOT THE ACT ITSELF BUT THE MANNER IN WHICH MRS. GANDHI TOOK UP MATTER WITH CHINA, AS BEING SOMEWHAT INCOSISTENT WITH HER WORDS EXPIN ABOUT BETTER UNDERSTANDING: SHE HAD SENT MESSAGE TO CHOU SAYING PKC HAD CONDENMED INDIA'S NUCLEAR TEST AND ASKED HOW CHINESE COULD TAKE SUCH LINE WHEN THEY THEMSELVES HAD DEVELOPED NUCLEAR FORD BOMB. IN REPLY CHOU INFORMED MRS, GANDHI THAT FACTS WERE TO THE a CONTRARY AND THE INDIANS SHOULD READ CHINESE STATEMENTS VERY CAREFULLY. THE CHINESE WERE NEITHER UPSET NOR CONCERNED ABOUT GERALD LIBRARY INDIA DEVELOPING NUCLEAR DEVICE, CHINA ONLY WANTED TO KNOW IF INDIA USED SOVIET HELP IN SUCH DEVELOPMENT. CHINESE WERE PLEASED TO LEARN THAT INDIANS HAD ACCOMPLISHED THIS ON THEIR OWN, IF INDIA STUDIED CAREFULLY WHAT CHINESE HAD SAID THEY WOULD NOTE NOTTO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET or STATE Department of State of STATES AMERICA TELEGRAM SECRET PAGE 03 HONG K 1 11684 02 OF 04 260301Z CHINESE MEDIA MERELY REPLAYED PAKISTAN COMMENTS AND REPORTS. CHINESE WOULD NOT FORESAKE PAKISTAN FRIENDSHIP AND PEKING HAD TO SHOW MINIMUM SUPPORT; INDIAN SHOULD UNDERSTAND THAT. EXC-S 5. IT WAS UNMISTAKABLY CLEAR TO THAT WHAT HAS MOST DEEPLY RANKLED CHINESE WAS INDIA'S MOVE ON SIKKIM, CHINESE LEADERS DWELT LONG ON THE INDIAN "ANNEXATION " AND ITS SERIOUS IMPLICATIONS. MUCH OF CHINAIS CURRENT PERCEPTION SEEMS HINGED ON THIS. VICE FOREIGN MINISTER CHIAO CHARGED THAT INDIA, BY MOVING ON SIKKIM, HAS STARTED A DANGEROUS GAME THAT WAS DESTABILIZING TO WHOLE AREA AND THAT IN LONG RUN WOULD BACKFIRE ON INDIA. THIS IS SOMETHING INDIA MUST RECKON WITH: IT CERTAINLY WAS NOT JUST INDIA'S OWN AFFAIR. CHINA HAS LEARNED THAT INDIA'S NETGHBORS, INCLUDING NEPAL, BHUTAN, CEYLON, BURMA AND EVEN MALAYSIA, WERE UNCERTAIN NOW ABOUT WHAT INDIA WAS UP TO. WHILE INDIAN HAD BY "ASSOCIATION" SCHEME TAKEN OVER SIKKIM, CENTRAL FACT was 75 PERCENT OF SIKKIMESE POPULATION WERE NEPALESE. EXC-S SOONER OR LATER THIS ETHNIC NEPALESE MAJORITY MIGHT IMPEL SIKKIM ASSEMBEY TO JOIN WITH NEPAL. NERALESE KING BIRENDRA HAS TOLD CHINESE THAT INDIA HAS THREATENED THAT IF NEPALESE DO NOT COOPERATE WITH INDIA'S POLICIES, NEW DELHI WOULD ASSIT FORMER NEPALESE PRIME MINISTER KOIRALA TO SUBVERT AND TO DEPOSE BIRENDRA. WHERE WOULD ALL THIS END? 6, NEPAL AND BHUTAN, ALARMED BY NEW DELHI'S POLICY ON SIKKIM, HAVE ASED CHINA FOR ASSISTANCE IN EVENTUALITY OF SIMILAR INDIAN MOVES AGAINST THEM. THE CHINESE REPLIED THAT PRC RESOURCES WERE LIMITED BUT CHINA WOULD RESPOND WITH ASSITANCE THAT IS NOT MILITARY BUT ECONOMIC WHICH WOULD HELP THESE COUNTRIES DEVELOP "SELF RELIANCE". IN VIEW OF MRS. GANDHI'S IGNORING INTERNATIONAL LAW RE LAND-LOCKED COUNTRIES CHINA WAS WILLING TO EXPIN BUILD FOUR OR FIVE FEEDER ROADS TO NEPAL AT NO COST TO NEPALESE so THAT NEPALESE EXPORT GOODS COULD BE SHIPPED OUT THROUGH CHINA AND SENT TO NORMAL MARKETS, INCLUDING INDIA. DISCUSSIONS ON THIS MATTER WERE UNDERWAY NOW, IN RESPONSE TO PARTY-TO -PARTY AND PEOPLE-TO -PEOPLE PREQUESTS, CHINESE WOULD ASSIT SOME 250 TO 500 NAGAS AND MIZOS FROM INDIA TO DEVELOP THEIR SELF RELIANCE AS WELL. 7, CHINESE TOLD THEY REJECT NEW DELHI'S RATIONALE FOR ITS SIKKIM POLICY WHICH ALLEGES THAT INDIA HAD TO ACT IN ORDER OERALO R. FORD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET or STATE Department of State AMERICA ARLINA TELEGRAM EXP-S EXC-S STATES or SECRET PAGE 04 HONG K 11684 02 OF 04 260301Z TO FORESTALL GROTH OF U.S INFLUENCE IN SIKKIM BY WHICH WASHINGTON COULD HAVE GAINED CONTROL OF SIKKIM. IN THIS CONNECTION CHINESE WERE AWARE INDIAN CLAIMED THAT HOPE COOKE, AMERICAN WIFE OF SIKKIMIS CHOYGAL, WANTED SIKKIM TO BE INDEPENDENT OR AT LEAST HAVE SAME STATUS AS BHUTAN. TOWARDS THIS END SHE ALLEGEDLY SOUGHT U.S. GOVERNMENT ASSISTNACE TO MODERNIZE SIKKIM, WITH U.S. GOVERNMENT'S REWARD TO BE DOMINANT INFLUENCE IN SIKKIM. IN ACTUAL FACT CHINESE SAID THAT U.S. WAS NOT SU NAIVE. SIKKIM WAS LAND-LOCKED COUNTRY AND ONLY WAY U.S. AID GOODS COULD BE PHYSICALLY SHIPPED WOULD BE VIA INDIA AND BY INDIAN SUFFERANCE. ONLY OTHER COUNTRY THAT COULD EFFECT CHANGE WAS CHINA BUT SIKKIM HAD NEVER EITHER DIRECTLY NOR INDIRECTLY CONTACTED CHINA. THE CHINESE SAID THE OPTIMUM TIME FOR SUCH CONTACTS WOULD HAVE BEEN APRIL 1973 WHEN SIKKIMESE PRINCESS, SISTER OF THE CHOYGAL, WAS IN HONG KONG AND COULD HAVE EASILY CONTACTED PRC REPEYTHERE. NO SUCH CONTACT HAD EVEN BEEN TRIED OR MADE ON EITHER SIDE AND NOW PRINCESS WAS UNDER HOUSE ARREST IN INDIA. FORD & GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET FORM 1 s Do STATE . # ORLINA AMERICA Department of State TELEGRAM STATES or SECRET 8072 PAGE 01 HONG K 11684 03 OF 04 2507042 12 ACTION SS=25 INFO OCT-01 ISO-00 /026 W 117658 P R 250500Z OCT 74 FM AMCONSUL HONG KONG TO SECSTATE WASHDC PRIORITY 2654 INFO AMEMBASSY DACCA AMEMBASSY KATHMANDU AMEMBASSY ISLAMABAD AMEMBASSY MOSCOW AMEMBASSY NEW DELHI AMEMBASSY TAIPEI AMEMBASSY TOKYO USLO PEKING CINCPAC HONOLULU HI SECRET SECTION 3 OF 4 HONG KONG 11684 EXC-S EXPIN EXDIS NOFORN CINCPAC FOR POLAD 8. THE CHINESE LAID EVEN SHARPER STRESS UPON THE IMPLICATIONS OF INDIA HAVING UNILATERALLY REMOVED AN IMPORTANT BUFFER BETWEEN INDIA AND CHINA, THE CHINESE ASSERTED THAT WHEREAS CHOU EN-LAI HAD SPENT MANY HOURS PERSONALLY EXPLAINING PRC POSITION TO NEHRU AND OBTAINING NEHRUIS AGREEMENT BEFORE PRC MOVED AGAINST TIBET IN 1954, INDIA HAD NOW MOVED AGAINST SIKKIM UNILATEREDLY WITHOUT ANY CONSULTATION OR NOTIFICATION. IT REPRESENTED GROSS IGNORING OF LEGITIMATE CHINESE INTERESTS, THE PRC MFA STATEMENT OF NON- RECOGNITION OF NEW DELHI'S ACTION WAS MEANT TO RESERVE CHINA'S OPTIONS AND WAS ISSUED WITH COMPLETE CONSENSUS AND APPROVAL OF ALL LEVELS OF CHINESE LEADERSHIP. SPECIFICALLY NOTED THAT THE CHINESE SAID MILITARY AND PARTY LEADERS ON ALL LEVELS INCLUDING WANG HUNG-WEN HAD CONCURRED IN THE PROMULGATION OF THE MFA STATEMENT.) THE CHINESE POINTED OUT THE REMOVAL OF THE SIKKIM BUFFER HAD REPERCUSSIONS ON BORDER SITUATION, NOT TO BE REPRODUCED WITHOUT SECRET THE AUTHORIZATION OF THE EXECUTIVE SECRETARY FORD 6 FORM ABRARY or STATE EXPING Department of State of STATE CLINA AMERICA TELEGRAM SECRET PAGE 02 HONG K 11684 03 OF 04 250704Z WHICH WAS NOW MORE VULNERABLE TO TENSION. PREVIOUSLY SAFE- GUARDED BY THE BUFFER, SOLDIERS ON EITHER SIDE COULD MAKE NORMAL MOVEMENTS IN THE AREA WITHOUT CAUSING ALARM BUT THAT NOW WAS ALL CHANGED. THE CHINESE MADE SPECIFIRUMENTION OF THE RISK NOW HAVING BEEN CREATED OF SOME RASH INDIAN OR CHINESE COMMANDER CREATING A MAJOR SERIOUS SITUATION ON THE BORDER THROUGH SOME UNTOWARD LOCAL ACTION. 9. WHILE AT THE SAME TIME DECRYING THE REMOVAL OF THE SIKKIM BUFFER, THE CHINESE, ESPECIALLY CHIAO KUAN-HUA, WENT ON AT GREAT LENGTH TO DECLARE THE PRC DOES NOT FEAR INDIA. CHIAO SAID, FOR EXAMPLE, THAT INDIA WAS AT LEAST TEN YEARS BEHIND CHINA MILITARILY. IN FACT INDIA WAS STILL TRYING TO FORM ONE NATION OUT OF MANY NATIONS, WHEREAS CHINA HAD ALREADY ACHIEVED THIS. CHIAO SAID INDIA RANKS FAR DOWN THE LIST OF CHINESE CONCERNS, PERHAPS SEVENTH OR EIGHTH. HE MENTIONED THAT THE SOVIET UNION TOPS THIS LIST, THEN THE U.S. AND THEN PRC DOMESTIC MATTERS EXBIN FOLLOWED BY AT LEAST THREE OR FOUR MORE PROBLEMS AHEAD OF INDIA. THE SOVIET UNION WAS MANIPULATING INDIA AND BANGLADESH BUT THE LATTER TWO ARE ENVELOPED BY ENORMOUS ECONOMIC AND INTERNAL PROBLEMS. CHINA HAURNO BAD FEELING OF ANY SORT TOWARDS THE INDIAN PEOPLE, CHIAO SAID THE INDIANS OUGHT TO KNOW THAT THE SOVIET AID TO INDIA IS NOT INTENDED TO HELP DEVELOP INDIA BUT TO KEEP NEW DELHI DEPENDENT SO THAT INDIA CAN ALWAYS BE USED BY MOSCOW. RUSSIAN ASSISTANCE (INCLUDING GRAIN SUPPLIES) IS NOT EXTENDED TO ENCOURAGE INDIAN SELF RELIANCE BUT MANIPULATED TO KEEP INDIA ON THE SOVIET STRING. 10, AS TO THE BASIC CHINESE THRUST AND INTENT IN THEIR CONVERSATIONS WITH SAID IT WAS CLEAR THE CHINESE WANT NEW DELHI TO CLARIFY INDIAN INTENTIONS. THEY REPEATEDLY VOICED THE THEME THAT MRS. GANDHI'S ACTIONS DO NOT MATCH HER WORDS. INDIA'S ACTIONS ARE EXPANSIONIST AND SEEM PART OF A SCHEME WHEREBY INDIA INTENDS TO IMPOSE SOME SORT OF CONFEDERATION WITH PAKISTAN, BANGLADESH, NEPAL, SIKKIM, BHUTAN UNDER INDIA'S BATON. IT IS UP TO INDIA TO TAKE ACTION TO REESTABLISH ITS BONA FIDES IN THE CONTEXT OF MRS. GANDHI'S PROTESTATIONS ABOUT INSTILLING GREATER CONFIDENCE AND UNDERSTANDING ON THE OTHER SIDE. THE CHINESE DID NOT, HOWEVER, SUGGEST TO WHAT ACTIONS MIGHT BE TAKEN, INDICATING ONLY THAT THE NEXT STEP WAS NOW UP TO NEW FORD s DELHI. LIBRARY NOT. TO BE REPRODUCED THOUT SECRET THE AUTHORIZATION O HE EXECUTIVE SECRETARY K OF STATE Department of State UNITED OF ) TELEGRAM I SECRET PAGE 03 HONG K 11684 03 OF 04 250704Z 11. MOST STRIKING WAS THE MESSAGE THE CHINESE LEADERS CONVEYED TO THAT THE DRIVING FORCE BEHIND PEKING'S EFFORTS TO DEVELOP A BETTER UNDERSTANDING WITH INDIA WAS TIED TO CHINA'S LEADERSHIP SUCCESSION QUESTION. THE SENIOR PRC LEADERS TOLD THAT BY THE SAME TOKEN IT WAS NECESSARY FOR CHINA TO HAVE BETTER RELATIONS WITH THE U.S. AND JAPAN BEFORE CHINA'S PRESENT EXPERIENCED LEADERS PASSED FROM THE SCENE, so TOO THE CASE OF RELATIONS WITH INDIA. ANTI-U.S., ANTI-JAPANESE, ANTI-INDIAN AND ANTI-FOREIGN FEELINGS HAD A HISTORY AND WERE STRONG IN CHINA BUT THEY MUST NOT BE CARRIED TOO FAR NOR BE ALLOWED TO GET OUT OF HAND. (ONLY THE ANTI-SOVIET FEELINGS ARE TO BE CONTINUED AND STRENGTHENED AND ACCORDINGLY THEY ARE BEING so EMPHASIZED IN THE ANTI-LIN ANTI-CONFUCIUS CAMPAIGN.) CHINA'S PRESENT LEADERS KNOW THE SITUATION AND THEY HAVE CONTROLLED IT BUT THEY WERE CONCERNED ABOUT THE NEW AND AS YET INEXPERIENCED LEADERS WHO WILL SUCCEED THEM. WHEN THESE CAME FORWARD WOULD THEY HAVE THE SAME RESTRAINT AND FORESIGHT? THAT IS WHY IT WAS NECESSARY AT PRESENT TO ESTABLISH BETTER INTERNATIONAL UNDERSTANDING. 12, IN THE SESSIONS WITH THE CHINESE, AGAIN PARTICULARLY CHIAO KUAN-HUA, INDULGED IN SOME PERSONAL DEPRECATION OF MRS. GANDHI. CHIAO SAID THE CHINESE KNEW MRS. GANDHI HAD A PERSONAL FIXATION (WHICH ADDED WAS TRUE) ABOUT BLAMING THE 1962 PRC ATTACK ON INDIA FOR THE DEATH OF NEHRU, HER FATHER. THE CHINESE SAID THE FACT IS THAT NEHRU AS A STATESMAN HAD ACCEPTED THE BURDENS OF OFFICE, IT WAS HE WHO IN 1962 MADE A PUBLIC STATEMENT TO THE EFFECT THAT HE HAD ORDERED HIS TROOPS TO "KICK OUT" THE CHINESE AND HE SHOULD HAVE KNOWN THIS WOULD COMPEL A CHINESE REACTION. HENCE HE AND NOT CHINA WAS RESPONSIBLE FOR THE CONSEQUENCES. CHIAO SAID MRS, GANDHI FACED STAGGERING EXPIN ECONOMIC AND SOCIAL PROBLEMS AT HOME AND SHOULD TAKE CARE OF THESE INSTEAD. OF MEDDLING WITH REGIONAL MATTERS. SHE SEEMED SURROUNDED BY TWO COMPETING SETS OF ADVISERS, ONE FOR IMPROVING RELATIONS WITH CHINA AND THE OZWER OPPOSED. HADN'T INDIA SUFFERED ENOUGH ALREADY? CORRUPTION WAS RAMPANT AROUND MRS. GANDHI INVOLVING EVEN HER SON AND HIS HOTELS. WHAT KIND OF LEADERSHIP WAS THIS? MRS. GANDHI NEEDED HER HEAD EXAMINED AND CHINA HAD THE FACILITIES AND WOULD MAKE THEM AVAILABLE IF SHE WANTED TO USE THEM. FORD & NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE GERALD BORALD SECRETARY LIBRARY SECRET 6 FORM / OF STATE & of I AMERICA Department of State TELEGRAM EXPIS EXP-3 SECRET PAGE 04 HONG K 11684 03 OF 04 250704Z 13, GNo/BANGLADESH, CHIAO TOLD THAT PEKING WAS IN NO HURRY TO ESTABLISH RELATIONS WITH BANGLADESH: CHINA ALREADY HAD ALL THE INFORMATION AND CONTACTS IT NEEDED TO DEAL WITH DACCA. ALREADY ANTI-INDIAN AND ANTI-SOVIET CHAOS WAS SPREADING THERE, BANGLADESH WAS SUFFERING AND WOULD GO ON SUFFERING BECAUSE IT WAS so FULL OF PROBLEMS. IN TIME MUJIB WOULD HAVE TO COME ON BENDED KNEE TO PEKING. GERALD ? LIBRARY FORD NOT TO BE REPRODUCED THOUT THE AUTHORIZATION O' HE EXECUTIVE SECRETARY 178235 OF STATE EXP Department of State AMERICA TELEGRAM STATES of SECRET 8043 PAGE 01 HONG K 11684 04 OF 04 250650Z 16 ACTION SS=25 EXPIR S INFO OCT-01 ISO-00 1026 W 117569 P R 2505007 OCT 74 FM AMCONSUL HONG KONG TO SECSTATE WASHDC PRIORITY 2655 INFO AMEMBASSY DACCA AMEMBASSY KATHMANDU AMEMBASSY ISLAMABAD AMEMBASSY MOSCOW AMEMBASSY NEW DELHI AMEMBASSY TAIPEI AMEMBASSY TOKYO USLD PEKING CINCPAC HONOLULU HI S E C R E T SECTION 4 OF 4 HONG KONG 11684 EXDIS NOFORN CINCPAC FOR POLAD 14 CONFIDED ABOVE INFORMATION TO CONGENOFFS ON ASSURANCE THAT BOTH HE AND HIS SOURCE WOULD BE STRICTLY PROTECTED. HIMSELF HAS FILED ONLY ONE STORY WHICH REFERS IN GENERAL TERMS TO CHINESE CONCERN RE SIKKIM BUT NOTHING MORE, HE DOUBTED WOULD PUBLISH ANYTHING SENSITIVE IN NEAR FUTURE HERESELF, ALTHOUGH SHE IS COLLECTING MATERIAL FOR FORTHCOMING BOOK. AS FOR CONVEYING SELECTED PORTIONS OF PRC VIEWS TO INDIAN AUTHORITIES, NOTED MRS. GANDHI'S STATEMENT OF OCTOBER 18 IN WHICH PRIMIN REMARKED THAT SINCE INDIA HAD SAID NOTHING WHEN PAKISTAN'S PRESIDENT BHUTTO ANNEXED HUNZA AND NOTHING WHEN CHINA TOOK TIBET, WHY WAS so MUCH BEING MADE OF SIKKIM? THOUGHT THIS MAY WELL BE MRS. GANHDI'S FIRST RESPONSE TO THE INFORMATION BROUGHT BY SAID ON HEELS OF HIS STORY HE HAD RECEIVED QUERY FROM HIS HOME OFFICE FOR MORE DETAILS ABOUT BUT HE HAD ADVISED THAT IT CONTACT DIRECTLY. FORD & NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIV PRALO SECRET LIBRARY SRY 6 OF of STATE Department of State CIRLINA ( TELEGRAM I OF SECRET PAGE 02 HONG K 11684 04 OF 04 250650Z 15, COMMENT. FROM OUR VANTAGE POINT WE ARE INCLINED TO ACCEPT THE ABOVE ACCOUNT AS AN ESSENTIALLY ACCURATE VERSION OF WHAT THE CHINESE TOLD SUCH CLUES AS THE INCLUSION OF DERROGATORY REMARKS ABOUT MRS. GANDHI, THE FACT THAT SAID NOTHING PUBLICLY IN HONG KONG ABOUT INDIA, AND LOCAL INFORMATIONINDICATING HAS GOOD RELATIONS WITH NCNA REPS HAVE ALL TENDED TO CONFIRM THE CREDIBILITY OF THE ABOVE ACCOUNT. AS SUCH IT IS THE MOST COMPREHENSIVE AND RECENT EXPOSITION OF PEKING'S CURRENT VIEW OF INDO-CHINA RELATIONS THAT WE HAVE SEEN HERE. 16. THE COMBINATION OF CHINESE SECRETIVENESS AND PRC MEDIA RHETORIC HAVE APPARENTLY OBSCURED THIRD COUNTRY KNOWLEDGE ABOUT PEKING'S ACTUAL ATTITUDES ABOUT AND WILLINGNESS TO CARRY ON A DIALOGUE WITH INDIA. (CONSIDER FOR EXAMPLE, HOW WELL KNOWN THE CHINESE VIEWS ON WESTERN EUROPE AND JAPAN ARE IN CONTRAST TO THOSE ON INDIA AND THE SUB CONTINENT.) THE ACCOUNT HELPS CONSIDERABLY TO CORRECT THE WIDELY HELD THIRD COUNTRY IMPRESSION THAT THE CHINESE HAVE TAKEN AN ILLOGICALLY HARD LINE ON RELATIONS WITH INDIA (REFTEL). WHILE NO DOUBT A NUMBER OF THE CHINESE STATEMENTS TO ARE OBVIOUSLY SELF SERVING AND BLUSTERING, IT IS NEVERTHELESS SIGNIFICANT THAT DESPITE THEIR UPSET OVER SIKKIM, THE CHINESE STILL SEEM WILLING TO RESUME THE DIALOGUE, AND HAVE LEFT THE DOOR OPEN FOR AN INDIAN RESPONSE. ADDITIONALLY IT ISL INTERESTING THATTHE CHINESE ARE TAKING PAINS IN THIS DIALOGUE NOT TO OVERDO SOVIET LINKAGE WITH INDIA, PRESUMABLY BELIEVING THERE ARE STILL POSSIBILITIES FOR COUNTERING TO SOME DEGREE MOSCOW'S PRESENT INSIDE TRACK POSITION RE INDIA. 17, THE RATIONALE PUT FORTH BY THE CHINESE ABOUT THE LEADERSHIP SUCCESSION ISSUE INFLUENCING CHINESE ATTITUDES TOWARDS INDIA IS BOTH FASCINATING AND NEW. THIS IS TIED IN WITH WHAT ORIGINALLY APPEARED TO BE RANDOM REFERENCES IN ACCOUNT ABOUT AN ALL- LEVEL CHINESE LEADERSHIP CONSENSUS SUPPORTING THE RECENT MFA STATEMENT ON SIKKIM AND ABOUT THE STRESS ON THE RISK OF A SERIOUS BORDER SITUATION ARISING FROM RASH LOCAL ACTIONS BY A COMMANDER ON EITHER SIDE. THIS ASPECT HAS IMPORTANT POLITICAL IMPLICATIONS FORD & NOT ONLY FOR CHINA'S FOREIGN RELATIONS BUT FOR THE PRESENT INTERNAL POLPCICAL SITUATION AS WELL. COMMENTS ON CURRENT INTERNAL POLITICAL DEVELOPMENTS BEING REPORTED BY GERALD LIBRARY SEPTEL. CROSS NOT TO BE REPRODUCED 'ITHOUT SECRET THE AUTHORIZATION C HE EXECUTIVE SECRETARY 4 or STATE * Department of State of / AMERICA UNITED TELEGRAM SEGRET 7211 PAGE 01 HONG K 13927 2710482 10 ACTION SS-25 INFO OCT-01 ISO-00 /026 W 044666 R 2709552 DEC 74 FM AMCONSUL HONG KONG TO SECSTATE WASHDC 3299 INFO USLO PEKING 8 E:C EL R E T HONG KONG 13927 EXDIS/NOFORN E.O. 11652: XGDS-2 TAGS: PFOR CH US SUBJ: PACE OF SINO-U.S. RELATIONS REF: A. PEKING 2305 B. PEKING 23311 C. HONG KONG 137081 D. PEKING 2290 1. RECENT INDICATIONS OF ALLEGED DISPLEASURE OF PRC OFFICIALS AT THE PAC OF PROGRESS IN SINO- AMERICAN RELATIONS HAVE COME FROM SEVERAL PLACES. IN ADDITION, SINCE LATE NOVEMBER, PRC ATTITUDES AS EXPRESSED TO FOREIGNERS HAVE FEATURED UNIFORM POINTS THAT THE USG MUST SEVER TIES WITH THE GRC, ABROGATE ITS TREATIES, AND WITHDRAW ALL TROOPS FROM TAIWAN IF RELATIONS ARE TO BE "NORMALIZED". BY REFERRING TO THE "JAPAN MODEL", THE PRC APPARENTLY IS AT THE SAME TIME INDICATING THAT CONTINUING U.S. TRADE, CULTURAL, AND OTHCER RELATIONS WITH TAIWAN WOULD BE ACCEPTABLE TO THE PRC, BOTH OF THESE THEMES APPEAR TO BE WELL- ORCHESTRATED AND DESIGNED TO BECOME WIDELY PUBLICIZED. 2. THESE ESSENTIAL INGREDIENTS OF THIS PRC FORMULATION & FORD HAVE BEEN PROVIDED TO CHICAGO DAILY S NEWS CORRESPONDENT SAME JAFFE (REF A) AND TO AMERICAN NEWSMAN IN HONG KONG (REF C). GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET DECLASSIFIED, with portions exempted 11 E.O. 12958, SEC. 3.5 STATE DEPT, GUIDELINES, state visit 8/2/00 BY GG NARA, DATE 4/27/01 OF STATE Department of State OF / AMERICA UNITED TELEGRAM SECRET PAGE 02 HONG K 13927 2710482 3, THE FOREIGN PRESS CORPS IN HONG KONG HAS OBTAINED ADDITIONAL INDICATIONS OF THE PRC'S POSITION FROM ARTICLES WRITTEN BY AFPIS SERGE RMENSKY (REF D) IN PEKING BASED ON JAFFE'S EXCLUSIVE INTERVIEW WITH SENATOR MANSFIELD. WE WOULD ANTICIPATE THAT THE SENATOR WILL BE PRESSED HARD ON THIS ISSUE DURING HIS VISIT IN HONG KONG AND WILL, OF COURSE, INFORM HIM OF THIS POSSIBILITY IMMEDIATELY UPON HIS ARRIVAL. EXCES EXC-S EXPIN 4. ALTHOUGH NO HONG KONG-BASED CORRESPONDENTS HAVE YET PUBLISHED THESE ACCOUNTS AND NONE KNOW THE FULL EXTENT OF THE INFORMATION AVAILABLE AT THIS POINT, WE BELIEVE THAT PUBLICATION OF JAFFE'S ARTICLES WILL PROBABLY LEADTO CONSIDERABLE SPECULATION AMONG OUR CHINA-WATCHING PRESS COLLEAGUES. SINCE CHINESE "IMPATIENCE" WITH THE PACE OF SINO-AMERICAN RELATIONS WAS PROVIDED TO AN AMERICAN REPORTED IN HONG KONG BY COMMUNIST EDITOR FEI I-MIN FIRST LAST AUGUST CHONG KONG 9217) WE WOULD ALSO ANTICIPATE FURTHER SUCH COMMENTS BY LOCAL CADRES TO THE PRESS CORPS. IN TURN AMERICAN PRESS CORPS WOULD THIS LINE TO SPECULATE ON CHINESE MOTIVES IN INITIATING THIS KIND OF CORRDINATED CAMPAIGN so FAR IN ADVANCE OF PRESIDENT FORD'S ANTICIAPTED VISIT TO PRC AND so SOON AFTER SECRETARY'S TRIP WHEN NO PUBLIC EXPRESS- IONS OF DISSATISFACTION WERE VOICED. CROSS FORD & GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 012732 REASON FOR WITHDRAWAL .... National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME AMCONSUL HONG KONG RECEIVER'S NAME SECSTATE WASHDC TITLE PRC Initiative toward ROKG CREATION DATE 10/29/1974 VOLUME 2 pages COLLECTION/SERIES/FOLDER ID 032400174 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 5 FOLDER TITLE Hong Kong - State Department Telegrams DATE WITHDRAWN 04/27/2001 WITHDRAWING ARCHIVIST GG NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 012728 REASON FOR WITHDRAWAL National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME AMCONSUL HONG KONG RECEIVER'S NAME SECSTATE WASHDC TITLE Pace of Sino-U.S. Relations CREATION DATE 12/27/1974 VOLUME 2 pages COLLECTION/SERIES/FOLDER ID 032400174 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 5 FOLDER TITLE Hong Kong - State Department Telegrams DATE WITHDRAWN 04/27/2001 WITHDRAWING ARCHIVIST GG DECLASSIFIED with poitions exemptal exem STATE E.O. DEPT, GUIDELINES state visit 8/2/00 12950, SEC. 3.5 BY 0 MARA, DATE 4/27/01 4 GRARTMENT OF STATE Department of State UNITED STATES OF the TELEGRAM SECRET 7211 PAGE 01 HONG K 13927 2710482 10 ACTION SS-25 INFO OCT-01 IS0-00 /026 W 044666 R 2709552 DEC 74 FM AMCONSUL HONG KONG TO SECSTATE WASHDC 3299 INFO USLO PEKING DECLASSIFIED with portions exempted S E e R E T HONG KONG 13927 E.O. 12958, Sec. 3.5 State Dept. Guidelines stale visit 8/2/00 EXDIS/NOFORN By lob . NARA, Date 4/27/01 E.O. 11652: XGDS-2 TAGS: PFOR CH US SUBJ: PACE OF SINO-U.S. RELATIONS REF: A, PEKING 2305 B. PEKING 23311 C. HONG KONG 137081 0. PEKING 2290 1. RECENT INDICATIONS OF ALLEGED DISPLEASURE OF PRC OFFICIALS AT THE PAC OF PROGRESS IN SINO- AMERICAN RELATIONS HAVE COME FROM SEVERAL PLACES. IN ADDITION, SINCE LATE NOVEMBER, PRC ATTITUDES AS EXPRESSED TO FOREIGNERS HAVE FEATURED UNIFORM POINTS THAT THE USG MUST SEVER TIES WITH THE GRC, ABROGATE ITS TREATIES, AND WITHDRAW ALL TROOPS FROM TAIWAN IF RELATIONS ARE TO BE "NORMALIZED". BY REFERRING TO THE "JARAN MODEL", THE PRC APPARENTLY IS AT THE SAME TIME INDICATING THAT CONTINUING U.S. TRADE, CULTURAL, AND OTHCER RELATIONS WITH TAIWAN WOULD BE ACCEPTABLE TO THE PRC. BOTH OF THESE THEMES APPEAR TO BE WELL- FORD & ORCHESTRATED AND DESIGNED TO BECOME WIDELY PUBLICIZED. 2. THESE ESSENTIAL INGREDIENTS OF THIS PRC FORMULATION GERALD LIBRARY HAVE BEEN PROVIDED TO CHICAGO DAILY NEWS CORRESPONDENT SAME JAFFE (REF A) AND TO AMERICAN NEWSMAN IN HONG KONG (REF C). NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET 11 DEPARTMENT OF STATE CANADA UNITED NUMBER Department of State TELEGRAM STATES OF SECRET PAGE 02 HONG K 13927 2710482 3, THE FOREIGN PRESS CORPS IN HONG KONG HAS OBTAINED ADDITIONAL INDICATIONS OF THE PRC'S POSITION FROM ARTICLES WRITTEN BY AFPIS SERGE RMENSKY (REF D) IN PEKING BASED ON JAFFE'S EXCLUSIVE INTERVIEW WITH SENATOR MANSFIELD. WE WOULD ANTICIPATE THAT THE SENATOR WILL BE PRESSED HARD ON THIS ISSUE DURING HIS VISIT IN HONG KONG AND WILL, OF COURSE, INFORM HIM OF THIS POSSIBILITY IMMEDIATELY UPON HIS ARRIVAL. 4. ALTHOUGH NO HONG KONG-BASED CORRESPONDENTS HAVE YET PUBLISHED THESE ACCOUNTS AND NONE KNOW THE FULL EXTENT OF THE INFORMATION AVAILABLE AT THIS POINT, WE BELIEVE THAT PUBLICATION OF JAFFEIS ARTICLES WILL PROBABLY LEADTO CONSIDERABLE SPECULATION AMONG OUR CHINA-WATCHING PRESS COLLEAGUES. SINCE CHINESE "IMPATIENCE" WITH THE PACE OF SINO-AMERICAN RELATIONS WAS PROVIDED TO AN AMERICAN REPORTED IN HONG KONG BY COMMUNIST EDITOR FEI I-MIN FIRST LAST AUGUST CHONG KONG 9217) WE WOULD ALSO ANTICIPATE FURTHER SUCH COMMENTS BY LOCAL CADRES TO THE PRESS CORPS. IN TURN AMERICAN PRESS CORPS WOULD THIS LINE TO SPECULATE ON CHINESE MOTIVES IN INITIATING THIS KIND OF CORRDINATED CAMPAIGN so FAR IN ADVANCE OF PRESIDENT FORD'S ANTICIAPTED VISIT TO PRC AND so SOON AFTER SECRETARY'S TRIP WHEN NO PUBLIC EXPRESS- IONS OF DISSATISFACTION WERE VOICED. CROSS S FORD & OFRACO LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF PHE EXECUTIVE SECRETARY SECRET 5 ARTMENT OF DEP STATE Department of State AMERICA UNITED TELEGRAM STATES OF SECRET 8915 PAGE 01 HONG K 13929 280617Z 15 ACTION SSW25 INFO OCT-01 ISO-00 1026 W 005395 R 2805107 DEC 74 FM AMCONSUL HONG KONG TO SECSTATE WASHDC 3301 INFO USLO PEKING M HONG KONG 13929 EXDIS DECLASSIFIED E.O. 12958 (as amended) SEC 3.3 NOFORN MR # 10-042-149 ptate dept ltr 5/4/10 E.O. 116521 GDS By dal NARA, Date 6/24/10 TAGS: PFOR CH US SUBJECT: US-PRC RELATIONS REF: PEKING 2331 1. WE HAVE BEEN PASSED BRITISH FOREIGN OFFICE TELEGRAM WHICH REPORTS ON CONVERSATION BETWEEN UK FOREIGN SECRETARY AND PRC AMBASSADOR (REFTEL) AND THINK IT IMPORTANT TO NOTE THE CONTEXT IN WHICH THE AMBASSADOR DESCRIBED SINO- U.S. RELATIONS AS "DEVELOPING" OR "PROGRESSING." THE AMBASSADOR VOLUNTEERED HIS COMMENT AND COUCHED IT AS A DENIAL OF PRESS ALLEGATIONS TO THE CONTRARY. 2. THIS PORTION OF THE TELEGRAM READS: QUOTE SUNG VOLUNTEERED THAT ALTHOUGH THE PRESS PERSISTED IN ALLEGING THAT SINO-U.S. RELATIONS WERE LESS GOOD IN FACT THEY WERE DEVELOPING. HIS INTERPRETER IN FACT TRANSLATED THIS AS THERE WAS PROGRESS', UNQUOTE FORD LIBRARA 3. COMMENT: IT MAY, OF COURSE, BE COINCIDENCE THAT AMBASSADOR SUNG DENIES PRESS ALLEGATIONS ABOUT A DOWN- TURN IN SINO-U.S. RELATIONS ON THE SAME DAY (DECEMBER 179 THAT VICE FOREIGN MINISTER YU CHAN IS PUMPING UP AMERICAN JOURNALIST SAM JAFFE TO MAKE JUST SUCH AN NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY SECRET or & Department of State AMERICA UNITED TELEGRAM EXPES EXPIS STATES OF SECRET PAGE 02 HONG K 13929 280617Z ALLEGATION (PEKING 2305). EASTEST EXPLANATION IS THAT CHINESE LINE SHIFTED SUDDENLY AND RENDERED GRATE R.FORD AMBASSADOR'S INSTRUCTIONS OUT OF DATE. WE WOULD NOT RULE OUT YET, HOWEVER, THE ALTERNATIVE POSSIBILITY THAT THE CHINESE COULD BE SHADING THEIR LINE TO FIT DIFFERENT AUDIENCES. PEKING MIGHT, FOR EXAMPLE, WANT TO INJECT A GREATER SENSE OF ANXIETY INTO AMERICAN PUBLIC OPINION, WHILE REASSURING A CLOSE AND WELL- ATTUNED U.S. ALLY LIKE THE UK THAT AFFAIRS ARE PROPERLY IN HAND. CROSS NOT TO BE REPRODUCE WITHOUT THE AUTHORIZATION F THE EXECUTIVE SECRETARY OF STATE ACTION CUP B / Department of State OF 15 COPIES UNITED STATES OF TELECRAM CONFIDENTIAL N00487 PAGE 01 HONG K 01152 01 OF 02 310926Z CONTROL: 68200 RECD: 31 JAN 75 00 1:46AM ACTION NODS-00 INFO OCT-01 /001 W 108884 P 310515Z JAN 75 FM AMCONSUL HONG KONG DECLASSIFIED E.O. 12958 (as amended) SEC 3.3 MR # #10 10.042.1910 TO SECSTATE WASHDC PRIORITY 3666 state dept. lets 5/6/10 c 0 N F I D E N T I A to SECTION 1 OF 2 HONG KONG 1152 By doe NARA, Date 6/24/10 NODIS E.O. 11652/ XGDS-2 TAGS: PINT, CH SUBJECT: FOREIGN MINISTER CHIAO TALK WITH NEW ZEALAND AMBASSADOR 1. FOLLOWING IS MAIN PORTION OF A REPORT FROM THE NEW ZEALAND AMBASSADOR (HARLAND) IN PEKING OF HIS TALK JANUARY 12 WITH CHINESE FOREIGN MINISTER CHIAO KUAN-HUA. IT WAS PASSED TO US BY A NEW ZEALANDER COLLEAGUE HERE (PROTECT) WITH THE COMMENT THAT CHIAO'S REMARKS WERE INTENDED TO REACH AMERCIAN EARS. HOWEVER WE BELIEVE OUR COLLEAGUE IS OPERATING ON HIS OWN INITIATIVE IN PASSING US THIS. FURD BEGIN TEXT. 2. INDO CHINA I TCLO CHIAO THAT WE ARE CONCERNED ABOUT THE CURRENT UPSURGED FIGHTING IN SOUTH VIETNAM. HE DISMISSED IT AS A MINOR PROBLEM, AND COMMENTED THAT THE AMERICANS WERE OVER-REACTING, AS USUAL. HE ALSO PLAYED DOWN THE IMPORTANCE OF CAMBODIA: QUOTE WHAT DOES IT MATTER WHETHER CAMBODIA ENDS UP RED OR BLUE? UNQUOTE, BUT HE WENT ON TO SAY THAT CHINA HAD ON THREE OCCASIONS IN THE PAST YEAR SPOKEN SERIOUSLY TO THE AMERICANS ABOUT CAMBODIA, AND THEY WOULD NOT LISTEN. THE LAST OCCASION WAS KISSINGER'S VISIT, THEN I SAID THAT WE HAD TALKED TO THE AMERICANS MORE RECENTLY, AND IT WAS OUR IMPRESSION THAT THEY MIGHT NOW BE - MOVING: THEY WANTED A POLITCIAL SETTLEMENT, AND WERE NOT WEDDED TO ANY PARTICULAR PERSON OR TO ANY PARTICULAR SOLUTION. CHIAO DEMURRED: HE QUESTIONED WHETHER THE UNITED STATES WANTED A CONF IDENTIAL NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY UNITED Department of St TELEGRAM STATES OF CONF IDENTIAL PAGE 02 HONG K 01152 01 OF 02 3109267 SOLUTION. THE PROBLEM MIGHT WELL DRAG ON FOR A CONSIDERABLE TIME YET (QUOTE FOUR OR FIVE YEARS UNQUOTE), 3. I SAID THAT SIHANOUK'S RECENT STATEMENTS SUGGESTED THAT HE AT LEAST WANTS A POLITICAL SOLUTION. CHIAO REPLIED THAT WE QUOTE SHOULD NOT READ TOO MUCH INTO THOSE STATEMENTS UNQUOTE. BUT HE DID AGREE THAT ANY POLITICAL SETTLEMENT WOULD HAVE TO CENTRE ON SIHANOUK. AND IN RESPONSE TO A QUESTION OF MINE, HE ASSERTED WITH A GREAT DEAL OF CONFIDENCE THAT THE NORTH VIETNAMESE WOULD NOT TORPEDO A SETTLEMENT SIHANOUK AGREED TO, I REMARKED THAT, AS THE CHINESE AMBASSADOR IN HANOI PAID A CALL ON LE DUAN A FEW DAYS AGO, CHIAO WAS PRESUMABLY IN A POSITION TO KNOW. HE DID NOT DENY IT. HE EXPLICITLY ADMITTED THAT CHINA WAS PROVIDING MILITARY SUPPORT FOR THE KHMERS ROUGES, AND, IN A RESPONSE TO A QUESTION, DENIED THAT SUCH SUPPORT WAS BEING HELD UP IN TRANSIT IN NORTH VIETNAM. 4. QUOTE TO SPEAK FRANKLY UNQUOTE, CHIAO WENT ON, SAIA'S PROBLEMS ARE BEING PERPETUATED BY THE FACT (PRECISELY REPRODUCED--HONG KONG). CHIAO APPEARED SURPRISINGLY TOLERANT OF AMERICAN ATTITUDES AND ACTIONS. HE CONCEDED THAT THE ADMINISTRATION FACED CONSIDERABLE PROBLEMS IN SORTING CUT ITS ASIAN POLICIES, AND IMPLIED THAT CHINA WAS PREPARED TO WAIT. QUOTE THEY CAN DO IT LITTLE BY LITTLE, AND SAVE THEIR FACE UNQUOTE. HE SAID, HOWEVER, THAT IN THE CHINESE VIEW THE U.S. HAD, SINCE FORD BECAUME PRESIDENT, BEEN DRAGGING ITS FEET IN ASIA, AND THAT THIS WOULD ULTIMATELY BE TO THE UNITED STATES' OWN DISADVANTAGE. HE DESCRIBED PRESIDENT FORD AS A QUOTE WEAK UNQUOTE PRESIDENT: THIS BE QUALIFIED BY SAYING THAT FORD HAD NOT BEEN ELECTED, BUT THE REMARK CLEARLY HAD WIDER IMPLICATIONS. 5. I OBSERVED THAT KISSINGER DID NOT NOW SEEM TO BE DEVOTING MUCH THOUGHT TO RELATIONS WITH CHINA. CHIAO REPLIED THAT KISSINGER REMAINED CONCERNED, BUT HAD BECOME PREOCCUPIED WITH OTHER, MORE PRESSING MATTERS. THAT WAS NOT TO SAY, HE SAID IN RESPONSE TO FURTHER QUESTIONS, THAT CHINA WOULD BE HAPPY TO SEE KISSINGER DEVOTE HIMSELF ENTIRELY TO EUROPE AND THE MIDDLE EAST. THE UNITED STATES SHOULD TIDY UP ITS AFFAIRS IN ASIA, SO THAT IT COULD CONCENTRATE ON DEALING WITH THE THREAT FROM THE SOVIET UNION. CONFIDENTIAL GERALD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY OF STATE Department of State TELEGRAM STATES OF CONFIDENTIAL PAGE 03 HONG K 01152 21 OF 02 3109262 5. I WAS SURPRISED TO FIND THAT, IN SPEAKING OF KISSINGER, CHIAO DISPLAYED SOME PERSONAL ANIMOSITY. HE HIMSELF TURNED THE CONVERSATION TO THE INTERVIEW KISSINGER RECENTLY GAVE TO QUOTE SUSINESS WEEK UNQUOTE. HE WAS CLEARLY ANNOYED BY THE SABRE- RATTLING ATTITUDE KISSINGER ADOPTED TOWARDS THE MIDDLE EAST, BUT HIS GREATEST CONCERN WAS WHAT THE INTERVIEW REVEALED ABOUT KISSINGER'S ATTITUDE TOWARDS EUROPE. IF THE UNITED STATES WAS UNHAPPY WITH ITS ALLIES, IT SHOULD SPEAK TO THEM PRIVATELY, CHIAO COMMENTED. KISSINGER'S STATEMENT WAS UNNECESSARY AND DAMAGING, FORD LIBRARA CONF IDENTIAL NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY OF STATE Department of State UNITED STATES OF TELEGRAM CONF IDENTIAL NOD476 PAGE 01 HONG K 01152 02 OF 02 310732Z 00 ACTION NODS-00 INFO OCT-01 /001 W 107820 P 310515Z JAN 75 FM AMCONSUL HONG KONG TO SECSTATE WASHOC PRIORITY 3667 CON F D E N T I A SECTION 2 OF 2 HONG KONG 1152 GERATO, FORD LIBRER NODIS 7. THE CONVERSATION MADE IT CLEARER THAN EVER THAT CHIAO'S MAIN PREOCUPATION IS WITH EUROPE, AND THE POSSIBILITIES FOR THE EXPANSION OF SOVIET INFLUENCE THERE. AND WHAT HE SAID SCRE LITTLE RESEMBLANCE TO CHINAIS PUBLIC UTTERANCES. 8, IN HIS VIEW, THE SOCIAL DEMOCRAT AND LABOUR PARTIES REPRESENT THE GREATEST DANGER IN WESTERN EUROPE- THOUGH NOT, HE HASTENED TO SAY, IN NEW ZEALAND AND AUSTRALIA. CONSERVATIVE PARTIES ARE MUCH LESS LIKELY TO FALL FOR SOVIET BLANDISHMENTS, AND THE ECONOMIC CRISIS IS LIKELY TO BRING THEM BACK TO POWER BEFORE LONG. BUT, I POINTED OUT, IN THE CRISIS OF THE 19308 IT WAS NOT THE TRADITIONAL CONSERVATIVES WHO CAME TO POWER IN COUNTRIES LIKE ITALY AND GERMANY, BUT THE LUNATIC FRINGE OF THE EXTREME RIGHT. THE REAL DANGER NOW IS THAT/PEOPLE IN EUROPE WILL LOSE CONFIDENCE IN THEIR OWN SYSTEMS OF GOVERNMENT, AND DO UNPREDICTABLE THINGS. THIS SEEMED ALMOST A NEW THOUGHT TO CHIAO. BUT I FELT HE TOOK MY POINT THAT THE FALL OF EUROPEIS LEFT OF CENTRE GOVERNMENTS WOULD NOT NECESSARILY BRING ABOUT A SITUATION MORE FAVORABLE TO CHINAIS INTERESTS. STILL, HE WAS FAR FROM ENTHUSIASTIC ABOUT THOSE IN OFFICE IN EUROPE AT PRESENT. IN THE CASES OF BRITAIN AND WEST GERMANY HE SPOKE MORE APPROVINGLY OF THE CONSERVATIVE PARTY LEADERS. HE HAS NOT MET GISCARD, HE SAID, IS COMING TO CHINA LATER THIS YEAR. (WE HAD NOT HEARD THIS BEFORE.) (PRECISELY REPORDUCED--HONG KONG.) 9. CHIAC SEEMED LESS CONCERNED ABOUT THE STABILITY OF THE GOVERNMENTS NORTH OF THE ALPS THAN BY THOSE TO THE SOUTH. HE CONP IDENTIAL NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY DEPARTMENT OF STATE Department of State UNITED STATES OF TELEGRAM CONFIDENTIAL PAGE 02 HONG K 01152 02 OF 02 3107322 OBSERVED THAT COMMUNIST TAKEOVER COULD WELL TAKE PLACE IN FOUR EUROPEAN COUNTRIES-. GREECE, ITALY, PORTUGAL AND SPAIN. WHEN I SAID THAT, IN ITALY AT LEAST, A COMMUNIST GOVERNMENT WOULD PROBABLY BE PRETTY INDEPENDENT OF MOSCOW, HE REPLIED THAT AS FAR AS CHINA WAS CONCERNED, A COMMUNIST ITALY MIGHT BE A GOOD THING, FOR, WHATEVER THE REALITY, IT WOULD BE WIDELY REGARDED AS A CREATURE OF MOSCOW. CI ASSUME HIS MEANING WAS THAT RESISTANCE TO SOVIET OVERTURES ELSEWHERE IN EUROPE WOULD BE STRENGTHENED AS A RESULT.) 10. THE SOVIET UNION WOULD DEARLY LIKE TO CAPITALIZE ON THE PRESENT UNCERTAINTY IN EUROPE, CHIAO SAID. ONLY ONE THING PREVENTED IT: THE UNSATISFACTURY STATE OF ITS RELATIONS WITH CHINA. (IN SAYING THIS, CHIAO INVERTED WHAT IS GENERALLY REGARDED AS BEING THE CHINESE POSITION- THAT THE SOVIET UNION WILL NOT MAKE TROUBLE ON ITS BORDER WITH CHINA BECAUSE IT IS PREOCCUPIED WITH EVENTS IN EUROPE.) CHIAO STRESSED THAT THE SOVIET UNION VERY MUCH WANTS TO IMPROVE ITS RLEATIONS WITH CHINA, BUT UP TC THE PRESENT ONLY ON ITS OWN TERMS. HE THEN SAID WITH EMPHASIS THAT THERE IS, NO WAY IN WHICH SINO-SOVIET RELATIONS CAN BE IMPROVED-- AND IMMEDIATELY BACKTRACKED BY SAYING THAT OF COURSE CIRCUMSTANCES MIGHT CHANGE IN THE FUTURE. A PROPOS OF THE ANNIVERSARY MESSAGE, TO WHICH I REFERRED, CHIAO REMARJED THAT THE PUBLIC AND PRIVATE STANCES OF THE SOVIET UNION WERE NOT ALWAYS IDENTICAL, BUT HE DENIED THAT THE RUSSIANS HAD MADE ANY PRIVATE APPROACH TO CHINA LATELY. R.FORD LIBRANT 11. COMMENT WHAT CHIAO SAID WENT SOME DISTANCE TOWARDS CONFIRMING MY RECENT SPECULATIONS ABOUT CHINA'S ATTITUDE TOWARDS THE U.S. AND THE SOVIET UNION. IT CERTAINLY MADE CLEAR THAT THE CHINESE STILL SEE THE RUSSIANS AS THEIR MAIN ENEMY. IT ALSO INDICATED THAT THEY ARE UNHAPPY ABOUT CURRENT AMERICAN POLICY. OSTENSIBLY, WHAT THEY OR AT LEAST CHIAO ARE MOST UNHAPPY ABOUT IS WHAT THEY REGARD AS KISSINGER'S MISHANDLING OF EUROPE, RATHER THAN HIS FAILURE TO TIDY UP THE ASIAN PROBLEMS LEFT OVER FROM THE FIFTIES. YET IN CLAIMING THAT CHINA IS PREVENTING THE SQVIET UNION FROM CAPITALISING ON THE CRISIS IN EUROPE, AND ALSO IN REMINDING ME THAT SINO-SOVIET RELATIONS CAN CHANGE, CHIAO WAS SURELY SUGGESTING THAT. CHINA IS AN IMPORTANT FACTOR IN WORLD CONFIDENTIAL NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY OF STATE Department of State UNITED STATES OF TELEGRAM CONFIDENTIAL PAGE 03 HONG K 01152 02 OF 02 310732Z POLITICS AND ITS POSITION CANNOT BE TAKEN FOR GRANTED. SO HE SEEMS TO ME TO BE ARGUING, OBLIQUELY BUT QUITE CLEARLY, THAT THE U.S. SHOULD TAKE MORE NOTICE OF CHINA. 12. ON INDOCHINA THE IMPORTANT THING THAT EMERGED WAS CHIACIS CONFIDENCE THAT HANOI WILL NOT TORPEDO A SETTLEMENT IN CAMBODIA CENTERED ON SIHANOUK. THIS CONFIRMS MY IMPRESSION THAT, IN SPITE OF WHAT MANAC'H SAYS, THE CHINESE HAVE BEEN TALKING TO THE NORTH VIETNAMESE, AND HAVE PROBABLY REACHED SOME UNDERSTANDING WITH THEM. IF SO, THE RISKS INVOLVED IN WORKING OUT POLITICAL SETTLEMENT MAY NOT BE AS GREAT AS MANACIH THINKS. END TEXT. CROSS FORD EVERY CONF IDENTIAL NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY STATE Department of State of I MAKE ALINA AMERICA TELEGRAM CONFIDENTIAL 7553 PAGE 01 HONG K 01836 2205052 15 ACTION SS=25 INFO OCT-01 ISO-00 1020 W 008052 R 220312Z FEB 75 FM AMCONSUL HONG KONG TO SECSTATE WASHDC 3890 INFO AMEMBASSY PHNOM PENH USLO PEKING e 0 N N t HONG KONG 1836 EXDIS NOFORN E.O. 116521 XGDS-2 TAGS: PINT CH CB SUBJ: SIHANOUK DEPRESSED AFTER HANOI TRIP DAILY TELEGRAPH PEKING CORRESPONDENT CLARE HOLLINGWORTH, PRESENT IN HONG KONG, TOLD CONGENOFF THAT HUGH GIBB, HONG KONG DOCUMENTARY FILM MAKER, MET WITH SIHANOUK IN PEKING FEBRUARY 20 AND FOUND THE PRINCE MOROSE. GIBB, WHO FILMED A SIHANOUK INTERVIEW TWO OR so YEARS AGO, TOLD HOLLINGWORTH HERE FEBRUARY 21 THAT SIHANOUK SAID IT WAS INCREASINGLY UNLIKELY HE WOULD EVER FORD RETURN TO CAMBODIA AND THAT HE WAS THINKING OF GOING TO LIVE IN FRANCE. THE CHINESE WOULD NEVER TURN HIM OUT BUT HE DID NOT WISH TO EMBARRASS THEM BY STAYING ON WHEN IT GERALD A. LIBRARY WAS CLEAR THAT HE HAD NO USEFUL ROLE TO PLAY IN CAMBODIAN AFFAIRS. GIBB SAID SIHANOUK LEFT LITTLE DOUBT THAT HIS DEPRESSION STEMMED FROM HIS RECENT VISIT TO HANOI (FEBRUARY 9-15) BUT WOULD SAY NOTHING ABOUT WHAT HAD TRANSPIRED THERE. STATE DEPT. DECLASSIFICATION REVIEW CROSS Retain Class'n Change to DECLASSIFIED Declassify in part and excise as shown E.O. 12956, SEC. 3.5 state visit 8/3/00 EO 12958, 25X )( )( ) STATE DEPT, GUIDELINES Declassify After BY GG , NARA, DATE 4/23/01 With concurrence (not)(obtained) IPS by JL Date 8/3/00 NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY CONF IDENT 6 FORM DS.1652 NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 012730 REASON FOR WITHDRAWAL National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME AMCONSUL HONG KONG RECEIVER'S NAME SECSTATE WASHDC DESCRIPTION Re People's Republic of China CREATION DATE 02/26/1975 VOLUME 2 pages COLLECTION/SERIES/FOLDER ID 032400174 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 5 FOLDER TITLE Hong Kong - State Department Telegrams DATE WITHDRAWN 04/27/2001 WITHDRAWING ARCHIVIST GG EXEMPTED 5/6/10 NATIONAL ARCHIVES AND RECORDS ADMINISTRATION Presidential Libraries Withdrawal Sheet WITHDRAWAL ID 012731 REASON FOR WITHDRAWAL National security restriction TYPE OF MATERIAL Telegram CREATOR'S NAME AMCONSUL HONG KONG RECEIVER'S NAME USLO PEKING DESCRIPTION Re People's Republic of China CREATION DATE 03/05/1975 VOLUME 1 page COLLECTION/SERIES/FOLDER ID 032400174 COLLECTION TITLE NATIONAL SECURITY ADVISER. PRESIDENTIAL COUNTRY FILES FOR EAST ASIA AND THE PACIFIC BOX NUMBER 5 FOLDER TITLE Hong Kong - State Department Telegrams DATE WITHDRAWN 04/27/2001 WITHDRAWING ARCHIVIST GG EXEMPTED 5/6/10 10 OF STATE WH EX@ Department of State of / AMERICA UNITED and TELEGRAM SECRET 6396 PAGE 01 HONG K 03026 220634Z 14-11 ACTION SS-25 INFO OCT-01 ISO-00 SSO-00 NSCE-00 1026 W 054365 0 220615Z MAR 75 FM AMCONSUL HONG KONG TO SECSTATE WASHDC IMMEDIATE 4270 INFO AMEMBASSY BANGKOK IMMEDIATE AMEMBASSY SAIGON IMMEDIATE SECRET HONG KONG 3026 EXDIS E.O. 11652: GDS TAGS: PGOV, VN, vs, PINS, CH SUBJECT: ASSESSMENT OF BANCROFTIS RELIABILITY REF: A) BANGKUK 47321 B) HONG KONG 8706 NOTAL, AUG. 2, 1974 1. WILLIAM H. BANCROFT, JR. IS WELL KNOWN TO CONGENOFFS AS AN UNRELIABLE AND ERRATIC BUSINESS SOURCE WHO HAS FLOATED NUMBER OF ALLEGED "BIG TIME" SCHEMES HERE, AND APPARENTLY TRIES TO CAPITALIZE ON "CRISIS OPPORTUNITIES. AS REPORTED IN REF R, HE WLAIMED INVOLVEMENT IN SEVERAL BIG DEALS THAT DID NOT TURN OUT. THE LATEST WAS IN CONNECTION WITH FOREIGN ENERGY RESOURCE INVESTMENT GUARANTEES WHICH HE ALLEGEOLY ARRANGED WITH THE GOVERNMENT OF BANGLADESH. 2, WITH REGARD TO BANCROFT'S ACCOUNT ABOUT PRESIDENT THIEU WE HAVE NO INFORMATION HERE WHICH WOULD IN ANY WAY SUBSTANTIATE SUCH ALLEGATION AND WE ALSO REGARD IT AS HIGHLY IMPLAUSIBLE. CROSS STATE DEPT. DECLASSIFICATION REVIEW Retain Class'n Change to Declassify in part and excise as shown FORD EO 12958, 25X( )( )( ) & Declassify After With concurrence (not)(obtained) PS by JL Date 8/3/00 GERALD LIBRARY SECRET NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY GG 4/23/01 Or and Department of State UNITED AMERICA TELEGRAM of STATES SECRET 1785 PAGE 01 HONG K 03095 250741Z 14 ACTION SS-25 INFO OCT-01 ISO-00 /026 w 087246 R 2501582 MAR 75 STATE DEPT. DECLASSIFICATION REVIEW FM AMCONSUL HONG KONG Retain Class'n Change to TO SECSTATE WASHDC 4303 Declassify in part and excise as shown INFO USLO PEKING EQ 12958, 25X( )( )( ) Declassify After SECRET HONG KONG 3095 With concurrence (not)(obtained) PS by JL Date 8/3/00 EXDIS E.O. 11652: GDS-3 TAGS: EEWT, EAIR, CH, KN, US SUBJ: us AIRCRAFT SALES TO PRC UNLIKELY, SAYS BOEING OFFICIAL REFS: A) 1974 PEKING 1276 B) 1974 STATE 194262 C) 1974 PEKING 1688 1. SUMMARY. A BOEING OFFICIAL SAYS THE COMPANY HAS BEEN TOLD REPEATEDLY BY THE PRC THAT IT WILL NOT BE BUYING ANY MORE US AIRCRAFT UNTIL THE USG RELENTS ON ITS NOT ALLOWING THE PRC TO PASS us PLANES ALONG TO DECLASSIFIED E.O. 12958, SEC. 3.5 TATE DEPT, GUIDELINES state vi Sit 8/3/00 NARA, DATE 4/23/01 NORTH KUREA. END SUMMARY. 2. MR. AL STOFFEL, A RETIRED FSO NOW WITH THE INTER- NATIONAL DIVISION OF BOEING CALLED TO DISCUSS OTHER MATTERS. IN THE COURSE OF TALKING ABOUT CHINA HE SAID IT LOOKED AS THOUGH THE CHINESE WOULD NOT BE BUYING MORE BY GG US AIRCRAFT FOR AWHILE BECAUSE THEY DID NOT LIKE THE RESTRICTIONS THE USG PLACED ON AIRCRAFT SALES. 3. HE EXPLAINED THAT THE CHINESE WANTED TO PASS THREE BOFING 707'S ON TO NORTH KOREA AND THAT UPON LEARNING FORD THAT THE USG WOULD NOT ALLOW IT THE CHINESE INDICATED THEY WOULD NOT BE BUYING ANY MORE US AIRCRAFT. SINCE GERALD ? LIBRARY THEN BOEING HAS GOTTEN THIS CHINESE MESSAGE "FROM ABOUT NOT TO BE REPRODUCED WITHOUT SAGRE -THORIZATION OF THE EXECUTIVE SECRETARY FORM DS-1652 DEPARTMENT or STATE * EXPIS Department of State UNITED AMERICA TELEGRAM STATES or SECRET PAGE 02 HONG K 03095 2507412 TEN DIFFERENT DIRECTIONS", HE SAID. CROSS DECEIVENED 60 15398 2EC 33 DAVIE DELI STAD ARAM. FORD & LIBRAR DERALO NOT TO BE REPRODUCE WITHOUT SECRET THE AUTHORIZATION THE EXECUTIVE SECRETARY FORM DS-1652 12 OF STATE WH Department of State AMERICA TELEGRAM STATES OF CONFIDENTIAL 4771 PAGE 01 STATE 155715 62 ORIGIN SS=25 INFO OCT-01 ISO-00 1026 R DRAFTED BY EA/VN:JDFINNEY:FMLC APPROVED BY EA:RHMILLER EA/VN#RHWENZEL DIKPENDLETON PPT:MRS. KELLER (DRAFT) S/S -LCJOHNSTONE E:CROBINSON 019599 P 0123512 JUL 75 FM SECSTATE WASHDC TO AMCONSUL HONG KONG PRIORITY INFO AMEMBASSY VIENTIANE PRIORITY EXCES C 0 N I D E N I STATE 155715 EXDIS E.O. 11652: XGDS-2 TAGS: BTRA, EEWT, EGEN, PFOR SUBJECT: VISIT OF AMERICAN CITIZEN TO HANOI REF: HONG KONG 7262 FORD & LIBRARY GERALD WE ARE NOT AWARE THAT DEPARTMENT HAS BEEN CONSULTED ON SAUBOLLE VISIT TO HANOI. IS HE IN FACT AN AMERICAN CITIZEN? INGERSOLL STATE DEPT. DECLASSIFICATION REVIEW Retain Class'n Change to DECLASSIFIED Declassify in part and excise as shown E.O. 12958, SEC. 3.5 State visit 8/3/00 EO 12958, 25X( )( )( ) STATE DEPT, GUIDELINES, BY GG NARA, DATE 4/23/01 Declassify After 0 With concurrence PS by JL (not)(obtained) Date 8/3/06 NOT TO BE REPRODUCED WITHOOHHORIZATION OF THE EXECUTIVE SECRETARY 13 COPY OF 15 COPIES FILE 200-0 OF STATE Department of State UNITED STATES OF AMERICA TELEGRAM CONFIDENTIAL NOD405 PAGE 01 HONG K 08431 231041Z CONTROL: 5630Q RECD: 23 JUL 75 12 6:15 AM ACTION NODS-00 INFO OCT-01 ISO-00 /001 W 032997 R 2308272 JUL 75 FM AMCONSUL HONG KONG N TO SECSTATE WASHDC 6070 INFO USLO PEKING C D LII N H A HONG KONG 8431 NODIS E.O. 11652: GDS TAGS: ENRG, CH, US, HK SUBJECT: PROPOSED FLUOR REFINERY COMPLEX REF: HONG KONG 8333 S 1. PARA 3 REFTEL INDICATED THAT THE PRC WOULD GIVE FLUOR FINAL DECISION ON THE HUGE REFINERY/PETRO-CHEMICAL PROJECT BY LATE NOVEMBER AT THE LATEST. ACCORDING TO HOOSE, CHINESE SIDE SAID THE DECISION WOULD BE POSITIVE IN ANY CASE BUT ANNOUNCEMENT WOULD BE TIED TO PRESIDENT'S VISIT WHICH CHINESE CLAIMED WOULD BEGIN NOVEMBER 4 OR 5. IF PRIOR TO VISIT US MADE SOME GESTURE WHICH PROPONENTS COULD POINT TO AS SIGN OF REAL IMPROVEMENT IN SINO- AMERICAN RELATIONS, THEN ANNOUNCEMENT COULD BE MADE IN SEPTEMBER OR OCTOBER. IF US UNABLE TO 00 OR SAY ANYTHING HELPFUL, THEN ZODIU ANNOUNCEMENT WOULD BE MADE AFTER TRIP AS INDICATION OF VISIT'S SUCCESS. KINDS OF GESTURES HOOSE SAID CHINESE SAID THEY HAVE IN MIND WERE SUCH THINGS AS REMOVAL OF MORE US FORCES FROM TAIWAN, SETTLEMENT OF CLAIMS PROBLEM AND, OF COURSE, BEST OF ALL, ESTABLISHMENT OF DIPLOMATIC RELATIONS WITH THE PRC. 2, I WAS NONCOMMITTAL, AS I ALWAYS AM WITH HOOSE ON THIS KIND OF THING, BUT IT STRIKES ME AS PRETTY LOW LEVEL AND BLATANT STUFF PROBABLY EMANATING FROM THE HONG KONG FRONT-MEN SIDE OF THE CHINESE TEAM. HOWEVER, I AM REPORTING IT IN THIS FASHION BECAUSE HOOSE PLANS TO CALL ON GENERAL SCOWCROFT OF NSC AND BECAUSE DATE FOR PRESIDENT'S VISIT GIVEN ABOVE IS CONFIDENTIAL FORD GG 4/23/01 & NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE ERALO SECRETARY LIBRARY ZOPIU OF STATE Department of State UNITED AMERICA TELEGRAM STATES OF CONF IDENTIAL PAGE 02 HONG K 08431 231041Z IDENTICAL TO DATE RECENTLY TOLD TO OTHER AMERICANS BY OTHER CHINESE CONNECTED WITH THE PRC. IF THIS IS ACCURATE AND CHINESE ARE PASSING THE WORD THIS WAY, IT MIGHT BE OF POSSIBLE IMPORTANCE TO WASHINGTON IN DETERMINING TIMING OF ANNOUNCEMENT OF VISIT. CROSS ZODIU ZODIU CONF IDENTIAL GERALD R FORD LIBRARY NOT TO BE REPRODUCED WITHOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY 14 THANTMENT OF STATE Department of State OF STATES AMERICA UNITED TELEGRAM CONFIDENTIAL 8297 PAGE 01 HONG K 11090 200604Z 11 ACTION SS-25 TNFO OCT-01 TSO-00 SSO-00 1026 W 049677 P R 200500Z SEP 75 FM AMCONSUL HONG KONG TO SECSTATE WASHDC PRIORITY 7069 STATE DEPT. DECLASSIFICATION REVIEW INFO AMEMBASSY BANGKOK Retain Class'n Change to AMEMBASSY TOKYO Declassify in part and excise as shown EQ 12958, 25X( )( )( ) C N HONG KONG 11090 Declassify After With concurrence EXDIS PS by JL (not)(obtained) Date 8/3/00 F.O. 11652: XGDS-2 TAGS: BTRA EEWT EGEN PFOR SUBJ: AMERICAN INTEREST IN TRADE WITH INDOCHINA REF: HONG KONG 72621 HONG KONG 8244 (NOTAL) 8/3/00 SUMMARY: THE CONGEN HAS COME ACROSS EVIDENCE THAT AT LEAST TWO AMERICAN CHAMGERS OF COMMERCE (AMCHAM) IN EA ARE ACTIVELY CONSIDERING PRESENTING RESOLUTIONS AT THE ASIAN PACIFIC COUNCIL OF AMERICAN CHAMBERS (APCAC) MEETING IN SEOUL DURING NOVEMBER, CALLING FOR USG EFFORTS TO OPEN UP ECONOMIC AND POLITICAL RELATIONS WITH THE DRV. IN CLOSELY REALTED MATTERS, U.S. BUSINESSMAN HAS ASKED US FOR INFORMAL ADVICE ON WHETHER U.S. TREASURY WOULD GRANT LICENSE FOR SALE OF AMERICAN COTTON DIRECTLY TO THE DRV. BECAUSE OF THE OBVIOUS POLITCAL IMPLICATIONS OF THESE TWO DEVELOPMENTS, WE ARE REPORTING THEM WITH REQUEST FOR DECLASSIFIED E.O. 12956, SEC. 3.5 STATE DEPT, GUIDELINES statevisit GUIDANCE BY FRIDAY, SEPTEMBER 26, WHEN CONGEN HAS ITS GG NARA, 4/23/01 DATE REGULAR MEETING WITH LOCAL AMCHAM BOARD OF GOVERNORS AT WHICH THESE MATTERS WILL BE DISCUSSED. END SUMMARY 1. THE HONG KONG AMCHAM HAS PREPARED A DRAFT RESOLUTION PROPOSING THE EARLY NORMALIZATION OF COMMERCIAL AND POLITICAL REALTIONS WITH THE DRV AND CAMBODIA. THE AMCHAM IS CONSIDERING THE POSSIBILITY OF PRESENTING ITS DRAFT TO THE APCAC MEETING IN SEOUL, NOVEMBER 7 TO 10. FORD LIBRARY & SECRETARY NOT TO BE REPRODUCED WITHOU CODE AUTHORIZ OF THE EXECUTIVE DEPARTMENT OF STATE Department of State UNITED STATES OF TELEGRAM CONFIDENTIAL PAGE 02 HONG K 11090 200604Z IT IS BEING STIRRED IN THIS DIRECTION BY THE JAPAN AMCHAM WHICH HAS ALREADY APPROVED A SIMILAR RESOLUTION, A COPY OF WHICH HAS BEEN BOOTLEGGED TO US. AMCHAM'S BOARD OF GOVERNORS INTENDS TO RAISE THE WHOLE QUESTION OF OPENING UP TRADE WITH THE DRV AT THE REGULAR MONTHLY MEETING WITH THE CONSUL GENERAL ON FRIDAY, SEPTEMBER 26. IN TYPICAL RESONSIBLE FASHION AMCHAM HAS KEPT us FULLY INFORMED OF ITS PLANS AND HAS ASKED US TO OFFER OUR VIEWS ON THIS SUBJECT AT THE MEETING ON FRIDAY. 2. SINCE THE WHOLE QUESTION OF OPENING UP TRADE WITH THE DRV IS ON ITS WAY TO BECOMING A HOT ISSUE IN THE VARIOUS APCAC CHAMBERS, AND SINCE WE KNOW THAT OUR REGULAR MEETINGS ARE REPORTED FULLY TO THE MEMBERS' HOME OFICES, WE WOULD LIKE TO BE AS AUTHORITATIVE AND HELPFUL AS POSSIBLE. HOPEFULLY BY THE RIGHT KIND OF APPROACH WE COULD ALSO HEAD OFF SOME UNWELCOME INITIATIVES. THEREFORE, REQUEST DEPARTMENT'S VIEW AS EARLY AS POSSIBLE PRIOR TO THE SEPTEMBER 26 MEETING. TEXT OF THE HONG KONG AMCHAM DRAFT RESOLUTION FOLLOWS. 3. BEGIN QUOTE: THE ASIA-PACIFIC COUNCIL OF AMERICAN CHAMBER S FEELS THAT A STRONG, INDEPENDENT, AND PEACEFUL ASTA WILL BE BEST ACHIEVED IF THERE IS A DIRECT AND OPEN DIALOUGE , ACCOMPANIED BY NORMALISED RELATIONS, BETWEEN THE U.S. AND ALL COUNTRIES OF THE REGION. FURTHERMORE, APCAC FEELS THAT COMMERCIAL AND POLITICAL INTERCHANGE WOULD MATERIALLY CONTRIBUTE TO REGIONAL POLITICAL AND ECONOMIC STABILITY. TO THIS END, A BOLD INITIATIVE IS REQUIRED BY THE U.S. GOVERNMENT TO ASSURE A SMOOTH AND RAPID DEVELOPMENT OF OUR COUNTRY'S POLITCIAL AND COMMER- CIAL RELATIONS WITH THE DEMOCRATIC REPUBLIC OF VIETNAM AND THE KHYMER REPUBLIC. PARTICULARLY, THE U.S. a GOVERNMENT EXCES SHOULD IMMEDIATELY PREMIT U.S. TRADE WITH VIETNAM AND THE KHYMER REPUBLIC UNDER TERMS AT LEAST AS FAVORABLE AS THOSE GRANTED WITH THE PEOPLE'S REPUBLIC OF CHINA. END QUOTE. 4. FOLLOWING IS TEXT OF JAPAN AMCHAM'S DRAFT RESOLUTION: BEGIN QUOTE: TO BOLSTER BOTH THE UNITED STATES IMAGE AND U.S. BUSINESS RELATIONS IN SOUTH EAST ASIA, AND TO GERACO R. FORD LIBRARY NOT TO BE REPRODUCED WITHOU THEDAUTHORIZATION OF THE EXECUTIVE SECRETARY DEPARTMENT OF STATE UNITED Department of State AMERICA TELEGRAM STATES OF CONFIDENTIAL PAGE 03 HONG K 11090 200604Z CARRY FORWARD THE LONG ESTABLISHED AMERICAN OBJECTIVE OF HELPING CREATE AN ECONOMICALLY VIABLE, INDEPENDENT VIETNAM, APCAC URGES A U.S. GOVERNMENT SUPPORTED, PRIVATE SECTOR ECONOMIC MISSION BE DISPATCHED PROMPTLY TO SAIGON EXCES AND HONOI, LED BY A SENIOR AMERICAN BUSINESS FIGURE. PRECENDENT EXISTS IN THE U.S TRADE MISSION TO THE PEOPLE'S REPUBLIC OF CHINA, NOVEMBER 1973, IN SUPPORT OF AN ONGOING ECONOMIC RELATIONSHIP, LEADING TO EVENTUAL ADJUSTMENT IN DIPLOMATIC TIES. EXPERIENCE SHOWS CLARLY THAT AMERICAN LONG TERM, STABILIZING INTERNATIONAL OBJECTIVES ARE NOT ACHIEVED THROUGH BOYCOTT AND THE ENDING OF ALL DIALOGUE. THEREFORE WE URGE A UNITED STATES INTITIATIVE TO RE-UPEN THE ECONOMIC REALTIONSHIP WITH VIETNAM. END QUOTE 5. IN ANOTHER CLOSELY RELATED MATTER, THECONGEN WAS APPROACHED BY LOUIS SAUBOLLE, VICE PRESIDENT AND FAR EAST REPRESENTIATIVE OF THE BANK OF AMERICA, AWITH AN INQUIRY CONCERNING THE FEASIBILITY OF SELLING AMERICAN COTTON DIRECTLY TO THE NORTH VIETNAMESE. DEPARTMENT WILL RECALL THAT SAUBOLLE WAS THE FIRST AMERICAN BUSINESS- MAN TO BE INVITED TO HANOI FOLLOWING THE DRV TAKEOVER OF THE SOUTH CHONG ONG 8244). ACCORDING TO SAUBOLLE, NORTH VIFTNAMESE OFFICIALS CANDIDLY ADMITTED THAT THEY WERE CURRENTLY IMPORTING U.S. COTTON THROUGH UNNAMED JAPANESE TRADING FIRM, BUT WOULD PREFER TO PURCHASE DIRECTLY FROM THE U.S SUPPLIERS. QUANTITIES OF U.S. COTTON ALREADY PURCHASED OR PLANNED TO BE PURCHASED WERE NOT REPORTED BY SAUBOLLE, BUT ARE BELIEVED TO BE MODEST AMOUNTS. 6. OBVIOUSLY SAUBOLLE IS INTERESTED IN SHOWING HANOI THAT HIS VISIT HAS PAID OFF IF USG WERE TO RELAX CONTROLS EXEMS EVEN IN THIS MODEST WAY. IT WOULD ALSO BE INTERPRETED BY THE DRV AND EVERYONE ELSE AS A POLITCIAL SIGNAL AS WELL. 7. WHILE WE WOULD LIKE DEPARTMENT'S REPLY TO SAUBOLLEIS INQUIRY FOR PRIVATE DISCUSSIONS WITH HIM, THIS FORD MATTER WILL NOT COME UP AT OUR FRIDAY MEETING. & CROSS GERALD LIBRARY NOT TO BE REPRODUCED WITHO THECAUTHORIZATION OF THE EXECUTIVE SECRETARY FORM