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2.

3. BY MID DECEMBER WE MIGHT HAVE FAIRLY CLEAR INDICATIONS THAT

COURSE 8 WAS THE MINIMUM PRICE FOR GREY, BUT WE COULD EXPECT

STRONG RESISTANCE FROM THE COVERNOR, ESPECIALLY IF THERE WAS

NO FIRM GUARANTEE THAT REMISSION WOULD SECURE THE RELEASE OF

GREY. IN ANY CASE, I PERSONALLY WOULD BE

NOST RELUCTANT TO RECOMMEND TO MINISTERS THAT WE SHOULD DEND

TO CHINESE PRESSURES IN THIS WAY.

I NOW SEE LESS MERIT THAN BEFORE IN COURSE C. IF THE

CHINE E WERE STANDING OUT FOR THE RELEASE OF LO ALONE WOULD

NOT HAVE MUCH EFFECT AS A GESTURE. AND IF LO VERE RELEASED

VITHOUT RESULTS, THE GOVERNOR WOULD UNDERSTANDALLY BE MORE

RELUCTANT TO CONSIDER ANY FURTHER NEASURES OF CLUNENCY,

5. TO FUT COURSE O FORMALLY TO THE CHINESE, WITH THE

PUILLITY THAT LIGHT RESULT, LOULD DIPOSE US TO THE CHARGE

CF USING THE DETAINEES AS POLITICAL PAINS AN ISSUE WHICH HAS

BECOME MORE SENSITIVE SINCE THE PUBLICATION OF REAR S LETTER.)

IT COULD PROBABLY ONLY BE PUT INFORMALLY THROUGH COVERT CHANNELS

IN HONG KONG, .GASS 3 PRELIMINARY REACTIONS WERE NOT UNFAVOURABLE PROVIDED SECURITY CONSIDERATIONS PERMITTED THE RELEASE OF A

LARGE ENOUCH NUMBER, 17 MIGHT HAVE SOME ATTRACTIONS FOR THE

COMMUNISTS BOTH IN HONG KONG AND PEKING. BUT WE HAVE NOT REALLY

MUCH OF A BARGAINING POSITION.

6. VIETRER COURSE E REMAINED FEASIBLE IN MID DECEMBER

MIGHT DEPEND AS MUCH ON THE PRESSURES OF PUBLIC OPINION IN THE

UK AS ON ON THE MERITS OF THE CASE,

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