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best to let the case of Hsueh take its course. He will be

due for release, with remission (which we do not contemplate

withholding) on 17 November. Thereafter the Governor believes

Mr. Grey may be released quite quickly. I have my doubts, but

believe we should go along with the Governor to that stage.

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12. Thereafter, if Mr. Grey is not released, we shall be under

greater pressure than ever either to retaliate against Chinese

citizens here (which would gravely prejudice Mr. Grey's chances)

or to make the appropriate concessions in Hong Kong. Reuters

are likely to be among those pressing for the latter solution.

Public indignation about Mr. Grey will grow rapidly if he is

not released shortly after the release of Hsuch, and sympathy

on his behalf must be expected to increase with the approach

of Christmas. I believe that we should allow no more than

about a month for the Governor's method to demonstrate its

effectiveness. If by mid-December Mr. Grey has not been

released we shall have to press the Governor hard to release

Lo without conditions. Fortunately he has indicated in Hong

Kong telegram No. 1028 of 28 August that at that point he

might indeed agree that this was the only way.

13. The foregoing line of argument was agreed with the

Commonwealth Office before the arrival of Hong Kong telegram

No. 2051 in which the Governor has commented on Mr. Cradock'e

proposal for immediate unilateral release of Hsueh and Lo.

Though the argument not to release Hsueh in the hope of

securing Mr. Grey's release is in itself trying to strike a

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