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of Cormunist offenders from the Colony to China, at least

without prior Chinese agreement. It seems likely therefore

that what the Chinese would really like to see is the release

of all the persons mentioned in paragraph 4 above and that

the release should take place in the Colony. This would

clearly be intolerable for the Hong Kong Government.

6.

Without going as far as this, however, it may be possible

to offer the Chinese a reasonable package within the limits

of what is tolerable in Hong Kong. Sir D. Hopson has put

forward a series of possibilitis81-

(a) that he tell the Chinese we would be prepared to

release Hsueh P'ing on the understanding that the

latter would "volunteer" to visit China and stay

there until the expiry of his sentence, after which

he would be free to return to Hong Kong.

(b) that if, as seems likely, the Chinese demur, this

offer be extended to cover the second N.C.N.A.

reporter, To Yu-ho, as well.

(c) that if both these offers are refused we consider

simple release of both N.C.N.A. reporters in the

Colony, as a last resort.

(a) that while any attempt by the Chinese to have all

the persons mentioned in paragraph 4 released in the

Colony would be clearly intolerable, we might consider

releasing them if deportation were guaranteed.

7.

Sir D. Hopson is aware of the problems that his proposals

raise for the Government of Hong Kong. He concedes that it is

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