CONFIDENTIAL:

COVERING SECRET

(ii) We should not attempt to bargain with the Chinese or to

establish a firm price with them for Mr. Grey's release.

(iii) In particular we should not at present consider releasing

convicted prisoners in return for Mr. Grey's release.

(iv) We should continue a policy of firmness while taking

what further steps we can to assist de-escalation.

(v) We should invite the Governor on his return to

(vi)

re-examine the situation and review the possibility of

releasing all the remaining detainees and the need

for the continuation of emergency powers taken during

confrontation.

We should now damp down publicity on the Grey case

in the belief that the Chinese will be more likely

to release him when not apparently under pressure.

Copies to:

Sir A. Galsworthy

Sir J.

Johnston

Mr. W. S. Carter

Mr. James Murray Mr. Baker

To turrel

(J. O. Moreton)

12 December 1968.

CONFIDENTIAL:

COVERING SECRET

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