10

the other hand, there to the thesis -

argued by Sir D. Hopson frem Teking that the

Chinese leaders must see themselves as having

gor Some way on their side towards re-

establishing a modus vivendi after last year's

troubles, and therefore expect positive steps

on our side. We must therefore be seen by them

to be seeking ways of re-establishing a modus

vivendi; and in this the key issue is

prisoners, The establishment of a modus

vivendi would bring direct benefits to Hong

Kong as well as to Sino-British relations

generally. This line of argument has also

also

been reinforced by the recent shift of Chinese

policy with regard to our Mission

provided

always the Chinese live up to their undertakings.

It may be therefe that there are less risks

in an act of clemency in Hong Kong now,

particularly when it can be represented not so

much as a concession to Chinese pressure, but

as an acknowledgment that the Chinese have

shown some readiness to improve relations.

Doubts have been expressed by our Mission in

Peking as to whether the Governor is not

being over-anxious about the effects of a

gesture of clemency on public opinion in

Hong Kong: but in a matter in which his executive responsibility is so closely involved, we would

have to consider very carefully before

questioning his assessment of the effect of

such action in Hong Kong.

11. It must be accepted however that we are likely to face increasing criticism in this country for our fallure to secure the release of Mr. Grey, and that this may become sharper

/ if conditions

lakes a somewhat different

approach to the problem from the Governor. He has argued

а.

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