CONFIDENTIAL
We must therefore face the fact that we will not get access
again to Mr. Grey until a further round of special visits
is permitted in Hong Kong. The Governor of Hong Kong has
argued that a further round of such visits would be
regrettable in general and particularly so in the near
future; it would tend to consolidate N.C.N.A.'s special
position in Hong Kong and give them a propaganda advantage;
it might encourage the Chinese to make further use of Mr.
Grey as a bargaining counter; and there might be an adverse
effect on public opinion in the Colony. The Governor adds
that the Chinese might well raise the price of a further visit.
We see the force of these arguments and agree that we should
There are, not be seen to be running after the N.C.N.A.
however, two counter arguments which must be borne in mind:-
(a) We have already conceded the point of principle by
permitting the first visit. There may be some
advantage in following up the tacit understanding
that appears to have been reached on the matter of
visita rather than allowing the understanding to lapse
and then finding ourselves in a position where we have
to revive it with a further round of elaborate nego-
tiations with N.C.N.A.
(b) The Chinese may raise the price of a further visit
whenever we propose it; but they would be particularly
prone to do so after a gap in which our inability to
secure further access to Mr. Grey other than by
accepting Chinese terms had again been demonstrated.
CONFIDENTIAL
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