SECRET
e)
of the 13 news workers or other convicted prisoners
particularly if the Chinese had indicated publicly that
such a price would certainly achieve the release of Mr. Grey.
But it would be premature to consider paying this price
until we have seen the results of continued firmness on
our part.
Admittedly, if we had finally to pay a price for Mr. Grey
in terms of convicted prisoners, it might be more
humiliating to be forced into it by a further period of
Chinese intransigeance than to pay it now. But this is
a risk which should be accepted.
ARGUMENT
Chinese Intentions
3. When we last reviewed the problem with the Governor in
October we had the advice of our informal contact in Hong Kong
that the Chinese would be releasing Mr. Grey in the fairly near
future. We decided that we should be prepared to give them
some three or four weeks from the time of the release of Hsueh
P'ing on 16 November in which to react. We had, however,
indications that the terms of the release of Mr. Grey were a
matter of contention between the local communists in Hong Kong
and the Peking authorities.
4. In the meantime we have had the complications of the
visit to Mr. Grey and the attendant publicity. Why the
Chinese took the initiative in allowing us a visit at that
particular time remains obscure it hardly accords with the
/thesis
SECRET
- 2 -