CONFIDENTIAL
reservations (Hong Kong telegram No. 50) though he has indicated willingness to make limited and graduated concessions, some of which have
He has undertaken Aww taken already been made.
to let us have his further views. If we accept Sir D. Hopson's reasoning, the only way forward on the Grey case is by means of unilateral concessions to the Chinese, in particular a major and probably damaging concession in Hong
Kong •
We have discussed the matter at official
level with the Commonwealth Office who share
and as own
Before putting the
the Governor's misgivings.
matter to Ministers, I think we should consult
Sir D. Hopson further. I have suggested that our views should be sent by telegram because the bag service is slow and I think it important
that we should clear our minds about the case
as soon as possible. If Sir D. Hopson can be persuaded that retaliation against N.C.N.A. in London is a possibility, we shall require a Ministerial approach to the Home Office to try
to get them to change the position taken up last year when the then Home Secretary would
not agree that there were grounds for expelling
G
N.O... personnel. Subject to your views, I
think it would be helpful if the telegrams to
Peking could go from the Permanent Under-
Secretary in order to indicate to Sir D. Hopson that his views have been very carefully weighed
at the highest official level.
Flag
(241
The Managing
Briector of Renters
is due to discun
the case with
Mr Rodger mexr
Wuk.
NOTHING TO BE WRITTEN IN THIS MARGIN
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