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"release to China" the NCHA reporters and possibly other communist journalists in exchange for the release of Mr. Grey. The Chinese hav so far not shown interest in the proposal, If they do co ve consider that their pries would be likely to be in addition to the NCKA reporters, the other 18 "journalist prisoners" to whom spectel visits were allowed in exchange for the visit recently made to Er. Grey. The main difficulty in such an exclange would be where the prisoners were eleleed. The Governor considers quite rightly that release in long long would, in present circumstances, bo out of the question unloos there was a guara..tee that the prisonere would
If they immediately proceed to Chins and not retur. it any ataŁO, stayed in the Colory there would be no way of re-arresting them, and
their continued presence vould be exploited by the communi eto in such a way as to unler.ne the authority of the Governant. Á general
amnesty involving larger numbers of prisolero would be open
a fortiori to the samo objections. Diy Donald Hopson his suggested that a compronice might be to allow them to return after the date
when their sentence would have sxpired. The Gover.or Bee0
difficulty also in this, at any rate at the present stage.
Chinese Aimo end "acties
10. The Chinese Government gave finsnedol and propaganda support
to the confrontation but alowed no inclination to intervene directly,
now to seek to create euch conditions of chaos as would have inquired
the Colony'a usefulness ao an corner of foreign exchange. The
naxinus Chinese aim appears to be the creation of a Macao-type
situation in which local Chinese Communist representatives dictate
important political decisions while we retain nominal sovereignty and
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