CYPHER CAT A
PRIORITY HONG KONG
TOP SECRET
COPY
TO COMMONWEALTH OPTICE
CEIVED IN
TELEGRAM NUMBER 2007
23 SEPTEMBER 1968
VES. No. 63
3.968
83;
15
TOP SECRET
HWD/
ADDRESSED CO TELEGRAM NO. 2007 OF 23RD SEPTEMBER REPEATED PEKING
PA SINGAPORE.
8291
NY TELEGRAM NO. 2000 : GREY.
CONTACT ASKED CATER FOR ANOTHER HEETING WHICH TOOK PLACE ON 21
SEPTEMBER. THAT PART OF THE MEETING WHICH CONCERNED
GREY MAY BE SUMMARIZED AS FOLLOWS,
2. CONTACT APOLOGISED FOR NOT YET HAVING COMMUNICATED WITH CHOU
EN LAI'S SECRETARY AS PROMISED ON 17 SEPTEMBER. THE REASON WAS THAT
HE HAD REEN HAVING SEVERAL LENGTHY "CONVERSATIONS WITH LI CHOP CH1
OF THE BANK OF CHINA ON OTHER MATTERS AND HAD TAKEN THE OPPORTUNITY
TO MENTION GREY TO LI. IT HAD BEEN EASY TO RAISE THE SUBJECT
BECAUSE LI HAD COMMENTED THAT RELATIONS WITH BRITAIN AND HONG KONG
SEEMED TO BE IMPROVING ALONG THE LINES DESIRED BY PEKING. CONTACT
THEN MENTIONED GREY AS AN OBVIOUS EXCEPTION. CONTACT HAD WONDERED
WHETHER PEKING INTENDED TAKING ANY ACTION ABOUT GREY, LI REPLIED THAT
IN HIS OPINION GREY WOULD PROBABLY BE RELEASED IN THE NEAR FUTURE
SINCE IT WAS CLEAR HE WAS SOMETHING CF AN EMBARRASSMENT TO PEKING.
CONTACT THEN ASKED WHETHER PEKING HAD EVER THOUGHT OF ASKING FOR
SOMETHING IN EXCHANGE AND IN REPLY TO A QUESTION FROM LI SUGGESTED
THAT PERHAPS HSUEH PING WAS THE OBVIOUS COUNTERPART. LI THEN SAID HE
THOUGHT IT HIGHLY UNLIKELY PEKING WOULD BE INTERESTED IN SUCH AN
EXCHANGE BECAUSE HSUEH WAS OF NO VALUE AND WAS A VERY LOW GRADE
́EMPLOYEE.
3. AT A LATER POINT IN THE CONVERSATION, LI SAID THAT HE HAD ALWAYS
UNDERSTOOD THAT IN ANY CASE IT WOULD BE VERY DIFFICULT FOR THE
BRİTİSH TO RELEASE A CONVICTED PRISONER, BUT ON REFLECTION THOUGHT
MIGHT BE WORTHWHILE SOUNDING OUT CATER ON THE POSSIBILITY OF AN -
EARLY RELEASE. CONTACT AGREED TO SPEAK TO CATER ON THOSE LINES. /4. W TOP SECRET