Kr. Boya F.E.D.

SECRET

Reference....

You probably know that in Hong Kong I maintain a confidential link with the publisher of one of the two Hong Kong Communist daily newspapers, namely Fei Yi-ming of the Ta Kung-Pao. This has been going on for some years and it has, I think, been of some mutual advantage in that it has enabled myself and the communists to exchange views on matters where there was a chance of negotiation..

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2. This exchange has always been conducted under the direction and with the fullest knowledge of the Political Adviser to the Hong Kong Government. Through him the Hong Kong Government has been kept fully informed of these" exchanges and on one occasion last year the Governor saw me personally and gave me an unattributable message to be sent to Fei as an expression of the Hong Kong Government's viewpoint.

3. The exchanges take place through two Chinese, one of whom is an old acquaintance of mine who was formerly in a position of power in Shanghai. The second intermediary is a director of the other Hong Kong Communist newspaper the Wen Wei Pao whom I knew during the last war in South China. Generally speaking the messages pass back and forth without serious distortion.

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4. When I was in Hong Kong on May 29 I met my contact. had been told by Reuters that Anthony Grey, their detained correspondent in Peking, had not been permitted to write to his mother. I therefore passed a message to Fei through the usual channel stating that I thought that it would be a humane act if Grey were to be permitted to write to his old mother. Just before I left for the airfield to return to London a day later I received the following reply. Fei Yi-ming replied that he could see no reason why Grey should not be allowed to write to his mother; he was therefore reporting the suggestion to Feking (Fei Yi-ming is a henchman of Chou En-lai and a close associate of Dr. Chao Kuan-hua of the Ministry of Foreign Affairs. He corresponds with them.)

5. Fei Yi-ming further stated that in regard to the larger question of the detention of British subjects in China the initiative in his opinion now rested with the British. He suggested that on my return to Hong Kong he might be willing to meet me accompanied by one or two of his associates in order to have an informal talk on this problem. He further added that he thought that an informal exchange should precede any formal exchanges undertaken in Peking in order that there might be no misunderstandings which could bring about a break- down.

6. My contact told me that the communists in his opinion, wanted to conclude this matter. They had been instructed by Peking not to make any serious trouble in Hong Kong. He told me in his opinion the time was approaching when it would be possible to negotiate an agreement.

7. I leave it to you to consider whether to take any notice of this or not. If you like, when I return to Hong Kong, which I hope will be before too long, I should be happy to pursue this matter and if considered desirable, to arrange a meeting with Fei. If that should take place I should like to

The be accompanied by the Assistant Folitical Adviser. matter as I see it is a question of bargaining.

Leslie Smith,

(L. Smith) 10 June, 1968.

CODE 18-75

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