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LI were to enquire as to what progress had been made on the HSUEH/Grey swop he should say that the matter still remained with Cater and that he would chase Cater up on this in a few days' time. With a little luck, I suggested, he may have had a response from Small LEUNG by then.

(Comment:

however, he

for

His

Jay is, ef-course, a consummate actor: appeared genuinely to be in a state of nervous tension: much of the time he was depressed but occasionally showed flashes of his usual arrogance and over-confidence. inconsistencies in reporting were obvious and he was clearly embarrassed on more than one occasion, even though I drew attention to them in a kindly manner. It is probably anybody's guess precisely what Jay has said and done in this matter of the HSUEH/Grey swop. In the past we have agreed that it would be prudent to assume that Jay reported back fully his discussions with me.

I think that almost certainly he has done so in

There is the additional respect of these discussions on Grey. factor of Jay taking the initiative with his "counter-proposal" to write to LEUNG. This may have placed him in a difficult position particularly in regard to me. This, plus perhaps genuine nervousness and forgetfulness on his part, probably led

He is the to the inconsistencies in the discussions to-day.

type of wheeler and dealer who likes to be in command of a given situation: it seems clear from to-day's performance that, at the moment, he is not.)

24th September, 1968.

f. Ca

(J. Cater)

Cater

c.c. D.S.B.

H./A.R.G. E.S.S.

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75x530 ~Date 25 Sept 68

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