293.0022/8–851: Telegram

The Chargé in the United Kingdom (Holmes) to the Secretary of State

secret

759. Lamb, Brit rep Peiping, has telegraphed FonOff re informal after dinner chat Panikkar had with Chou En-lai August 2. Panikkar raised with Chou question treatment fon natls and summarized Chou’s statements for Lamb approximately as fols:

1.
Re Catholics, Chou said Commies had ample evidence it was deliberate policy Catholic Church resist Commie regime. Such activities by fon Catholics must be dealt with under Commie security law, but Chou thought if possible authorities wld not use against foreigners exactly same penal measures taken against Chi.
2.
Foreign Protestants included worthy individuals who wld be encouraged to stay in Chi to do education and welfare work, and even teach Christianity. However, Chou made it plain there was no room for foreigners actively seeking converts.
3.
As regards exit permits for businessmen, Chou admitted there had possibly been some delays. He insisted some bona fide businessmen always wld be welcome in Chi, and emphasized desire of Chi trade with West, pointing out that in 1950 Chi trade with West appreciably greater than trade with East (Lamb comments that Swed Amb, on routine tour govt offices after presenting credentials, also told by high officials, including Chu Teh, of anxiety Commies for trade).
4.
When Panikkar mentioned fact local reps fon firms being held [Page 1771] responsible for obligations incurred by their principals, Chou said he was willing to look into matter, but warned he cld not intervene if action taken was in accordance Chi law.

Panikkar feels Chou’s responses were generally encouraging, and that he is prepared consider any reasonable case, Lamb reports. However, Lamb himself comments he sees little evidence which wld justify optimism, Chou’s refs to Chi security laws being particularly ominous. But Lamb feels Panikkar has provided convenient opening for possible representations, and therefore intends proceed with discussions with colleagues re course they shld take.

In forwarding summary, Lamb noted Panikkar probably did not intend report to his govt much of conversation, and requested FonOff respect confidence in which info given.

Holmes