CONFIDENTIAL:

COVERING SECRET

still in custody by mid-December the situation would have to

be reviewed.

4.

The main events since then have been:-

5.

(a) Discussions were held in Hong Kong between the

Acting Governor, HM Chargé d'Affaires Peking and the

Head of Far Eastern Department which went a long way

towards reconciling differing view points.

(b) A further 18 detainees have been released leaving

only 16.

(c) At the initiative of the Chinese visits have been paid

to the 13 convicted Chinese news workers in Hong Kong

and a visit to Mr. Grey has taken place.

(a)

The report by Mr. Cradock on Mr. Grey's condition has

hit the world headlines. The publicity seems to have

embarrassed the Chinese.

(e) Mr. Cradock has on instructions protested against the

conditions of Mr. Grey's detention and urged his

release.

(f) Parliamentary and public interest has been aroused

about the remaining detainees in Hong Kong.

The conclusions which I hope will emerge from the

discussions are:-

(i) We should resist pressure to take retaliatory action

against Chinese in this country.

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COVERING SECRET

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