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4. It is clear that in negotiating the release of Mr. Grey
we are confronted with two overlapping problemst
(a)
the number of Communist journalists imprisoned in
Hong Kong which the Chinese want to see released in
exchange for Mr. Grey; and
(b) the place where these prisoners shall be released.
We do not know how many people the Chinese hope to see
released. The most optimistic estimate (which formed the
basis of previous offers to exchange Mr. Grey for Hsueh P'ing)
is that the Chinese would be prepared to trade him for a single
N.C.N.A. journalist. This has achieved no results so far and
eeems unlikely to succeed. It is possible that the Chinese
would settle for the release of the two imprisoned N.C.N.A.
journalists, Haugh P'ing and Lo Yu-ho. This hope deserves
at least further exploration.
It may, however, be too sanguine.
The Chinese would only give us access to Mr. Grey after a
special visit had been permitted in Hong Kong to the two
N.C.N.A. reporters, 11 other journalists and 7 other "patriotic
newspaper workers" 20 persons in all. By analogy their price
for the release of Mr. Grey could be the release of all of
these.
5. The Chinese have insisted in their exchanges with Sir D.
Hopson about a reply to their "demands" that the release of
Communist prisoners in the Colony is a matter of major
importance. They have also indicated in the matter of two
Communist film stars whose deportation was attempted last
month, partly as a test case, that they would resist expulsion
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