Cypher/Cat A
121
CONFIDENTIAL
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IMMEDIATE HONG KONG TO COMMONWEALTH OFFICE
Telno. 27
6 January 1968
CONFIDENTIAL
Addressed to C.0. telegram No. 27 of 6 January Repeated for information to:
107
Peking, Singapore, and Washington.
My telegram No. 1903: Communist Press.
McGregor's negotiations have ended in deadlock. The Communists objected to meeting him in neutral premises; and said that if the intention was that they should approve a statement to be read in Court or that the Ta Kung Pao or its proprietor Fei's name were to be mentioned in Court there was no room for negotiations.
2. As a result of this rebuff, McGregor and his solicitor are now disinclined to give ground too easily. They have provisionally fixed an early date for the assessment of damages. Their intention is that, once they have been assessed, McGregor's Counsel will make a unilateral statement in Court to the effect that McGregor's name having been vindicated, his client in the interests of decreasing tension here does not propose to proceed further towards the recovery of the damages. This would theoretically leave him free to pro
roceed at a later date e.g. if the Ta Kung Pao were to libel him again.
3. In view of the Communist's uncompromising attitude there seems to me some advantage in following this course of action. The possi- bility of having to pay damages will hang like a sword of Damocles over the paper and may act to some extent as a surety of better behaviour on their part. There is of course a danger that in the period between the day on which it becomes known that McGregor is to proceed with the case (which will be Monday) and the day of the award of damages the Communists may get agitated about the case and try to launch a major campaign about it. But I doubt if the risks of this are substantial enough to justify our trying to induce McGregor to abandon the case now.
4.
Hearing of the assessment for damages has been provisionally fixed for Friday, 12 January. If McGregor does not proceed on that date his solicitor will not be able to get another date before the end of February. My own feeling is that there would be some advantage in trying to conclude the matter quickly; and unless you or Peking see strong objection, I should not try, to prevent McGregor going ahead.
5.
The provisional date is to be confirmed by McGregor's solicitors by noon on Monday, 8 January, (Hong Kong time). If you want me to
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CONFIDENTIAL
HWA 14/32