HONG KONG

CONFIDENT IAL

HONG KONG

PEKING

PEKING

H.K. Dept. I.& G. Dept. News Dept.

FED, JIRD, OLA, OPA, JIPOD, News Dept.

Your telegram No. 344 8 Film Stars

We agree with the line proposed in your

paragraph 4. We consider, however, that the

reference to NONA should be omitted in order that

this exercise may be kept separate from the question

of prison visits, We entirely agree it should be

kept out of the Political Advisers talks on that

subject.

2. We feel, however, that Hopson's argumente in

paragraph 1 of Peaking telegram No.223 against

pursuing this through formal channels are valid.

By handling it informally through the channel

referred to in your telegram No. 331 we make it

possible for the Chinese to consider the proposition

without striking an attitude; and it would involve

no commitment for either side at the initial stage.

We doubt the value of using the China Merchants

Steam Navigation Company for the reasons given in

/paragraph 3(c)

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