CONFIDENTIAL

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11.

Although we are still waiting for a reply to the approach

made to the Chinose on 7 February about visa problems for our

Mission and Chinese intentions with regard Mr. Grey (including

the suggestion of an exchange), Sir D. Hopson does not think

that a soparate approach now on prison visits would cut across

the exercise. I agree; that it could even provide us with an

opportunity to prođ the Chinese into replying to our proposals

of 7 February.

12.

It must be recognised that the proposed approach, even if

it fails, is as far as we should go in making concessions in

Hong Kong to gain access to Mr. Grey. To go any further might

put at risk our position in Hong Kong; we would be abandoning

the policy of firmnoss which in our dealings with the Chinese

over the Colony has brought us through the recent troubles,

and we would be encouraging Chinese hopes that we can still

be pushed into making substantial concessions there. for the

sake of our Hission and other British subjects in China. (There

can be little doubt that the achievement of some form of

"Macao-type" situation in Hong Kong remains the ultimate Chinese

objective.)

Conies to:

Mr. Samuel

Hr. Carter, 0.0. Consular Department.

(James Murray)

22 February, 1963

CONFIDENTIAL

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