}

CONFIDENTIAL

(a)

(e)

any clemency accorded to him could, in present

circumstances, cause serious political embarrassment

vis a vis China who would be able to complain that

an act of serious provocation had been carried out

in Hong Kong by granting clemency to a nationalist

spy;

the ensuing publicity would present an opportunity

which would be seized upon by the local communist

press as proof of their allegations concerning

corruption within the Police Force and the conspiracy

which exists between the Hong Kong Government and

Taiwan;

(f) in order to obtain the necessary funds to make any

ex gratia payment, reference would need to be made

to the Hong Kong Standing Finance Committee, on which

the unofficial members of the Legislative Council are

in a majority. This would involve a revival and

discussion of the whole case which would be a most

undesirable development having regard to its nature.

CONFIDENTIAL

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