SECRET

recently been canvassed in some sections of the press here).

But such action might well prove difficult to put into effect

and in any case would be most unlikely to secure the release

of Mr. Grey. Moreover it might well lead to retaliation

against the Mission or other British subjects in China and

would reverse the trend of such slight progress as we have

been able to make towards a better state of Sino-British

relations. I think therefore that we must continue to resist

pressure for any such action. (The arguments are being

developed in greater detail in a separate paper.)

9. As for action in Hong Kong, there are two tactical

considerations to be taken into account.

a) Chinese reluctance to name a price for Mr. Grey is

encouraging to the extent that it can be interpreted as

indicating that they have not taken a firm decision to

stand out for the 13 newspaper workers. It seems likely

that this reluctance will continue. Indeed I would be

opposed to trying to push them into naming a price since,

once they had done so formally, it would be very difficult

to dislodge them from it even if it were quite out of the

question. This means however that we would be most

unlikely to have any firm guarantee that any step we took

in Hong Kong would in fact result in the release of Mr. Grey.

Any gesture would therefore have to be to some extent an

act of faith.

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/ b)

Given the

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