lag A

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6

on in Britain if within, say, the next two months there is

no improvement for the bankers in Shanghai.

11.

The crux of the matter is what we should do about N.C.N.A.

I see three possibilities:

(e). To grant entry visas for N.C.N.A. and hope that

this will improve the chances of arranging the

exchange for Mr. Grev.

This course has the warm support of Sir Donald

Hopson. The Chinese have stated quito categorically

that Mr. Grey is not "a visa case" (Peking telogram

no. 72) and we have known over since he was arrested

that his case was tied to Hong Kong and not to

N.C.N.A. in London. The best prospect for Mr. Groy's

release is an exchange with either one or both the

N.C.N.A. prisoners in Hong Kong. We have already

dropped a hint to the Chinese that this would be

possible. Nevertheless there is no doubt that we

would be running the risk of serious criticism both

in Parliament and the press if we agreed to return

to normal conditions for the diplomatic staffs in

Poking and London while having to admit that we had

been unable to obtain any satisfaction about Mr. Grey.

The General Manager of Reuters told me informally

last night that he thought it would be indefcnsible

in the eyes of the press to allow further N.C.N.A.

journalists into this country while Mr. Grey was

still hold incommunicado.

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/(b)

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