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(11) ▲ possible solution, provided it could be
arranged quickly to take advantage of the
apparent readiness of the Chinese leaders
to make some small progress in our affairs
(speed should be emphasised in view of the
slowness of this channel up to now), would
be the exchange of Grey for Hsueh and,
possibly, Lo also.
(iii) Cater would add that he thinks he could
persuade the Governor to agree to release
Ksuch and even Lo quickly; but it would be
essential, if he is to stand a chance of
getting the Governor's agreement, that he
should receive some assurance about Grey's
release.
5.
If, after say four weeks, the Chinese have
not reacted through the covert channel, it
would be open to us to put a similar proposal
through the Kission in Peking (o.f. paragraph 4
of Feking telegram No. 765).
6.
Te should be grateful for your views as
soon as possible.
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