Dd. 32855 Ed (4200)

NOTHING TO BE WRITTEN IN THIS MARGIN

5. We must however recognise that if the

Chinese do not respond by releasing Grey

shortly thereafter, we shall be in a most

position

difficult/ bit

Bituatio If the Chinese have

not released Grey within say 4 weeks from

17 November there would be a strong case

for considering the unconditional release

at that point of Lo. We shall then be in

the position envisaged in para. 2 of your

telegram No. 1028. Hsueh will have done

his time. We shall have attempted to

negotiate the release of Grey and shall

have failed.

The release of Lo can be

implied to be the outcome of our exchanges

with the Chinese and will therefore, as you

pointed out, be much more acceptable in

Hong Kong.

6.

Action on these lines will bring us

close to Christmas. We must in any case

anticipate renewed publicity about Grey

around the time of Hsueh's release, and the

strongest possible pressure on Ministers

to show that a serious effort has been

made on his behalf. You may also feel

that the approach of Christmas would make

it easier to present the release of Lo

appropriately for public consumption.

'7 Oct.

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