Canberra, 11 December 1972
820. Secret Austeo Priority
For Ambassador.
Bank of China
Before your departure this week you should inform the R.O.C. Government that we want it to arrange for the Bank of China to wind up its business and arrange its early withdrawal from Australia. We would like this effected quickly, and you should explain that we wish to avoid a situation where the Bank was still in existence at the time we recognize the R.O.C.1
2. We suggest you say that the terms of the existing authority authorize the Bank of China to carry on banking business for the ‘Government of China’ and for ‘representatives in Australia of the Government of China’ . After the time of recognition of the P.R.C. (i.e. once ajoint.communique with the P.R.C. is issued) these references would be presumed in Australia to refer to the Government of the P.R.C. Moreover our legal understanding is that the P.R.C. would be in a position after recognition to assert a claim to the Sydney branch’s assets and business. Please urge R.O.C. authorities to take prompt action in their own interest.
3. You should assure R.O.C. authorities that we do not see the withdrawal of the Bank as affecting the financing of normal commercial trade which will, of course, continue.
4. Please note that we want no publicity about this matter.
5. We informed Shen of the above today.
[NAA: A1838, 3107/38118/6, i]
1 The acronym ‘ROC’ should read ‘PRC’ .