CONFIDENTIAL

Peking telegram No.114 to Foreign Office,

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we are not prepared to ask the Governor for further concession in a sector which would vitally affect Grey while we are prepared to ask for further, and as I see it irrelevant, sacrifices from staff of this Mission.

4.

I have done my best in correspondence hitherto to avoid burdening you with references to human problems of our staff and families still unable to leave this country after a very trying year. But they are considerable particularly for those with divided families. The staff have taken it all splendidly but if this deal falls through it will be hard to explain to them their continued detention when a clear chance for settlement has been offered, as they are well aware, and we have failed to clinch the deal on grounds which I cannot with the best will in the world see as convincing. There will not only be gloom but resentment.

5. I understand your anxieties on above mentioned opinions but if as we agree pretext for favourable treatment for this Mission and disregard for Grey is unjustifiable I cannot see where the difficulty lies. It should be possible to explain that our best chances of helping British subjects lies in re- establishing more normal diplomatic relations which we now have the chance to do. If on the other hand it turns out that we have spoilt our chances by refusing to grant NCNA visas while Grey is in custody, I cannot see how it will help us vis-a-vis public opinion to have all our staff detained in China as well as Grey.

Foreign Office please pass Hong Kong 71.

Sir D.Hopson

[Repeated as requested]

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