251
CYPHER/CAT A
CONFIDENTIAL
263
EDIATE FOREIGN OFFICE TO PEKING
TELNO 76
19 JANUARY, 1968 (FED)
CONFIDENTIAL.
ADDRESSED TO PEKING TEL NO 76 OF 19 JAN REPEATED FOR INFORMATION TO HONG KONG
FROM P.U.S.
252
253
:
GREY.
YOUR TELEGRAMS NOS.42 AND 48
WE ARE GRATEFUL FOR YOUR ADVICE. BEFORE SUBMITTING TO MINISTERS WE SHOULD LIKE TO RUN OVER THE OPTIONS AGAIN. YOUR VIEWS AS WE UNDER- STAND THEM ARE AS FOLLOWS:-
(A) RESUMPTION OF MOVEMENT RESTRICTIONS ON N.C.N.A. IN LONDON WOULD NOT HELP GREY AND MIGHT REBOUND ON YOUR STAFF.
(B) CLOSURE OF N.C.N.A. (OR THREATS TO DO SO) WOULD NOT HELP GREY EITHER AS HIS CASE IS DIRECTLY LINKED TO HONG KONG. IT WOULD ON THE CONTRARY REVERSE THE TREND TOWARDS REDUCTION OF TENSION, IT MIGHT RESULT IN KEY MEMBERS OF YOUR STAFF BEING DECLARED PERSONA NON GRATA AND IT WOULD DEPRIVE US OF CHINESE HOSTAGES.
(C) THE ONLY MEASURES AGAINST N.C.N.A. IN LONDON SHOULD THEREFORE BE THE CONTINUED WITHHOLDING OF RESIDENCE PERMITS OR POSSIBLY THEIR RENEWAL FOR A MONTH AT A TIME
*
(D) THE KEY TO PROGRESS OVER GREY, AS WELL AS IN SINO-BRITISH RELATIONS IN GENERAL IS A MAJOR GESTURE OF CLEMENCY IN HONG KONG (YOUR TELEGRAM NO.41).
(E) IN THESE CIRCUMSTANCES ANY PUBLICITY OR GUIDANCE WHICH HAD THE EFFECT OF INCREASING PRESSURE FOR RETALIATORY MEASURES SHOULD BE AVOIDED.
2. WE AGREE WITH (A). WE SEE THE FORCE OF (B) (SUBJECT TO THE RESERVATIONS BELOW) THOUGH WE ARE NOT (REPEAT NOT) SURE THAT THE RETENTION OF MEMBERS OF N.C.N.A. AS HOSTAGES WOULD GREATLY INFLUENCE CHINESE CALCULATIONS. IF HOWEVER WE ACCEPT YOUR REASONING IN (B) THAT THE CHINESE ARE NOT TO BE MOVED BY THREATS TO CLOSE N.C.N.A.
/IT
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CONFIDENTIAL