SECRET
risks that are unacceptable.
In addition to th
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 for
Grey.
more
3. In these circumstances Kinisters consider
that we should seek to initiate secret discussio
with the Chinese. So as to make the maximum us
of Hsueh (while we still hold him and can thus
represent his premature release as a gesture of
goodwill on our part), and for humanitarian
reasons, they further consider that the
approach should be made quickly; and that we
should from the outset be ready to offer to
include Lo in the exchange (for reasons advanced
in paragraph 6 of Peking telegram No. 765).
We therefore hope that you would see no
objection to putting forward as soon as possible
through the Cater channel a proposition on the
following lines:-
(1) Cater would say that in the improved
atmosphere that has followed the resumption
of the grant of some exit visas to our
Kission it ought to be possible to settle
the question of Grey which remains an
irritant in our relations.
SECRET
/(11) A