1

CRTDENTAL

depends entirely on Bong Kong. Cur attempt to prođ the

Chinese on en exchange by pressure over N.C.N.A. here hos

thus failed. By holding up progrese on the normalisation of

conditions of the inglon, no may in fact also be making is

more difficult to obtain exit viscs for British bazkera in

Shanghai, who wish to leave Chins. Ho considera that if wo

concade the Chinese terms it is likely that the deadlock will

be brokon. fo camnet of course be sure of this; but I think

that it is a reasonable assumption. There have been a chimber

iso

of other slight indications that the Chinese ray wish to bring

relations with our Mission in Peking back to normal.

In any

doud, es I pointed out in my previous subaiseion, it would be

wise to take this opportunity to withdraw those members of

the Rission who ought to leave at a time when the Chinese seen

disposed to moderation, as it is always possible that if the

situation in Hong Kong agein Cotoripratod, the Chinese night

retaliate once more against the Mission.

6.

An regarda Mr. Grey, there has been no progreso whatsoever

towards his release. The Chinese have not taken up the question

of an exchange, although it has bean raised with thoa trico.

This is not surprising, ne Br. Grey represento a valuablo cord

and we may not find out precisely what quid are quo the Chinose

want until they have explored the ground further.

On the other

hand, Sir D. Hopson now thinks that there is a reasonablo chanca

that we will be granted eccosa following cur agreement to special

visito to B.C.N.A. representatives and othor "patriatio”

journalists imprisoned in Hong Kong. At present we areswaiting

COFFE DAREIAL

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