CONFIDENTIAL

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in gaol is now down to eleven. But notwithstanding this, the NCNA in Hong Kong say that Mr. Grey will not be

released until all these journalists are released.

What is not clear to us is whether the Chinese will release

him even if we release the eleven journalists. A case

could perhaps be made out for the premature release of the

majority of these journalists subject to certain conditions.

But a difficulty was that one of the journalists, the one

not due for release until 1971, was sentenced for carrying

an offensive weapon, etc. If, therefore, he in particular

(and for that matter the others) was released prematurely

it could weaken the position of the Hong Kong authorities in

the future maintenance of law and order. It would destroy

the faith of law abiding citizens in the colony. There

were also wider aspects to consider. Clearly we must

avoid getting ourselves manoeuvred into a situation similar

to that which has occurred in Macao where the Portuguese

now find themselves the puppets of the Chinese. Giving

in to Chinese demands over Mr. Grey could also jeopardize

the safety of other Britons in China, since they too might

be taken as hostages in the knowledge that we would always

pay a price for their release. In addition, the probability

could not be ruled out that if other Governments got the

idea that we were always ready to pay a price for hostages

it might jeopardize the safety of Britons (particularly

the foreign correspondents of newspapers) living in other

CONFIDENTIAI

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