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MORITY COMMONWEALTH OFFICE TELEGRAM NUMBER 1414

TO HONG KONG

30 AUGUST, 1958 (HKD)

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ADDRESSED TO GOVERNOR HONG KONG TELEGRAM NUMBER 1414 CF 30 AUGUST EATED FOR INFORMATION TO PEKING.

YOUR TELEGRAM NUMBER 1007: GREY.

-(28)

WE ARE GRATEFUL FOR YOUR ANALYSIS OF THE POSSIBLE COURSES OF ACTION AND FOR THE COMMENTS IN PEKING TELEGRAM NO. 765. THE PROBLEM IS INDEED A VERY DIFFICULT ONE. WHILE FULLY UNDERSTANDING YOUR REASONS FOR PREFERRING TO POSTPONE ACTION UNTIL NOVEMBER, WE HAVE TO CONSIDER THE PRESSURES BUILDING UP HERE FOR SOME ACTION NOW. WE MIGHT BE ABLE TO LIMIT THESE, IF WE CAN GIVE A CONFIDENTIAL ASSURANCE IN CERTAIN QUARTERS THAT WE ARE TAKING AN INITIATIVE TO SECURE GREY'S RELEASE.

2. WE SEE THE FORCE OF THE ARGUMENTS IN PEKING TELEGRAM NO. 765 IN FAVOUR OF UNCONDITIONAL RELEASE AS AN ACT OF FAITH. BUT WE RECOGNISE THAT THE PRACTICAL DIFFICULTIES IN PARAGRAPH 1 OF YOUR

744 TELEGRAM NO. 1028 ARE OVER-RIDING. MOREOVER WE JUDGE THIS COURSE

TO BE A GAMBLER'S THROW CARRYING RISKS THAT ARE UNACCEPTABLE. IN ADDITION TO THE POINTS MADE IN PARAGRAPH 12 OF YOUR TELEGRAM UNDER REFERENCE WE WOULD ALMOST CERTAINLY BE UNDER SEVERE, IF UNJUSTIFIED, CRITICISM HERE FOR HAVING GIVEN UP OUR BARGAINING COUNTERS WITHOUT MAKING AN EFFORT TO SATISFY OURSELVES THAT THIS WOULD SECURE GREY'S RELEASE, AND, AS YOU SAY, WE WOULD HAVE GREATLY LIMITED OUR POSSIBILITIES OF BEING ABLE TO DO ANYTHING MORE FOR GREY.

/3. IN THESE

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789. 798.

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