(e)
(4)
(9)
2.
The only measures against 1.C.N.A. in London
should therefore be the continued withholding-
of residence permits or possibly their renewal
for a month at a time.
The key to progress over Grey, as well as in
Gino British relations in general is a major
gesture of clemency in Hong Kong (your tele-
fram 70. 41),
In these circumstances any publicity or guid-
ance which had the effect of increasing pressur
for retaliatory measures should be avoided.
We agree ith (a). We see the force of (b)
(subject to the reservations below) though we are
not (report rot) convinced that the retention of
Members of N.J.N.A. as hostages would influence
Cinere calculations as those concerned suffer no
Ciaconfort in this country and their worst ultimate
fate would be expulsion. 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 surely follows
that they will be even less concerned by the implied
Mureat of withholding rere.al of residence permits.
Since nort of their staff have been on tine-expired
permits for some months already, there would be no
sduitional threat in continuing this situation.
we now granted any of the permits (over for a neriod
of a month at a time), we would in fact be making a
e ncescion rotha than increasing pressure.
3. As regards (d) the Governor of Hong Kong has
#irendy expressed reserv tions a.out a major act of
clemency (Hong Kong telegram To. 50) and we hope
/soon
If
[Mag E]
[Flag F]
032717 E.W.& S., Ltd. 164m 3/67.
NOTHING TO BE WRITTEN IN THIS MARGIN