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some outstanding problems. On the other hand, there

remains considerable force in the Governor's arguments

against discrimination in favour of the political prisoners

and in the need to prevent propaganda capital being made

out of prison visits by large numbers of communist sympathisers.

In the end our real hope of securing Mr. Grey's release,

opposed merely to consular access, lies in an exchange. This

can be pursued after the deportation of the two communist

film stars, which the Governor is putting in train, in order

to test the Chinese reactions. In the meantime, I do not

think that we should go beyond the course which the Governor

proposes. As it is, the N.C.N.A. prisoners are treated far

more generously than Kr. Grey and to make further concessions

to them which would damage our position in Hong Kong would

not be justified. Moreover it would underline to the Chinese

the value of Mr. Grey as a means of putting pressure on us

in Hong Kong.

Copies to:

Mr. Samuel

Mr. Carter, C.O.

(James Murray) 30 January, 1968

CONFIDENTIAL

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