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release to China of New China News Agency journalists

imprisoned in Hong Kong in exchange for the release of Mr. Grey;

and subsequently of specific offers by our Mission in Peking

to exchange Mr. Grey for Heuch P'ing, one of the two N.C.N.A.

reporters imprisoned in Hong Kong • The Chinese have not

responded to Mr. Brown's letter or to the specific offers.

4. Mr. Grey was detained in retaliation for the arrest of

Hsueh P'ing. Another #.C.N.A. journalist in Hong Kong, Lo

Yuk-wo, was subsequently arrested. They are due for release

with full remission on 17 November, 1968 and 12 September,

1969 respectively. Of the other Communist newspaper workers

convicted in Hong Kong during the troubles, 13 are still in

prison. The last prisoner in this group would be due for

release with full remission on 2 February 1971.

Before we

were able to obtain a visit to Mr. Grey last April, we had, on

Chinese insistence, to allow special visits to all "patriotic

newspaper workers" imprisoned in Hong Kong.

Argument

5. It is highly unlikely that the Chinese price for Mr. Gray

would be less than the release in Hong Kong of Hauch and Lo.

In any discussions with them they might in the first instance

at least try to insist on the release of the other newspaper

employees as well, but settle eventually for Hsuch and Le,

6. The Governor's preferred course of action is that, apart

from the initiation of a carefully-timed publicity campaign,

we should do nothing until Hsuch is released in the normal

way in November. If this is not enough to secure the release

/ of Mr. Grey

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