CONFIDENTIAL
531
Cypher/Cat A
RIORITY PEKING TO FOREIGN OFFICE
Telegram No. 362
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LAST
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518A
NEXI
29 April, 1968
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541
Addressed to Foreign Office telegram No. 362 of 29 April, Repeated for information to Hong Kong.
5/8A) My telegram No. 348: Grey.
SISA
I hope approach as recommended in support of my telegram under reference may succeed in bringing about some improvement in Grey's conditions. We must however also give further consideration to moves that might lead to his release.
2. We have had no official reply to our proposal to release Hsueh P-ing to China in exchange for Grey but in view of Lo Kuei-po's negative responses to our offer of 13 April that Communist prisoners might be released to reside in China we must assume that a renewal of offer of release to China whether of one or both of N.C.N.A. prisoners would be rejected by Chinese.
3. It might be possible to get Chinese to accept an arrange- ment whereby Hsueh P-ing and Lo Yu-ho would be released and would "ask" to reside in China until their sentence expires on understanding that they would be free to return to Hong Kong afterwards.
4. We must accept however that the Chinese may well insist on unconditional release in Hong Kong of one or both N.C.N.A. men and it is worth noting that in discussions last week with Bargmann the West German correspondent, Hong Kong Communist leaders are alleged to have stated price for Grey was for both to be released in Colony. In last resort unless we are to abandon our efforts to obtain Grey's release I think we shall have to be prepared to agree to this.
專犟
5. I therefore recommend that I be instructed to approach Ministry of Foreign Affairs officially and inform them that you wish me to initiatie negotiations for the release of Grey. As part of this first approach I suggest I should refer to our previous offer to deport Hsueh P-ing, to Lo Kuei-po's rejection in general of such procedure, and hint that a compromise satis- factory to both sides might be reached if it were agreed that Hsueh P-ing should be released on clear understanding that he. would volunteer" to visit China (perhaps in response to an invitation from the Chinese Government) and stay there until his sentence expired, after which date he could return to Hong Kong if he wished. Offer would be made initially for Hsueh P-ing but could be increased to include Lo Yu-ho as a later concession if necessary. We should have to get a firm understanding from Chinese on simultaneous release of Grey. Only in the last resort would be consider offering simple release in the Colòny. We should also have to resist attempts by Chinese to include all their "patriotic" newspaper workers in the deal, though I presume that if Chinese accepted our compromise on "deportation" the objection to increasing the numbers would not (repeat not) be so great.
16.
I recognize
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