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3 CONFIDENTIAL

they will not release Mr. Grey until the eleven journalists

are released. But even if they were released, we could not

be sure that Mr. Grey would be allowed to go free in return.

The difficulty was that the Chinese have never mentioned

a price for the release of Mr. Grey. The Chinese

Chargé d'Affaires whom the Minister of State met last week

had given no indication of Chinese intentions regarding

Mr. Grey. All the Chinese had ever said was that they

would not release Mr. Grey until the detained journalists

in Hong Kong had been released: this did not necessarily

mean that they would release him once the journalists were

freed. Without knowing the price the Chinese wanted paid

for the release of Mr. Grey there was a danger that if we

took up too much of the running, the Chinese would only

increase their demands. Notwithstanding the difficulties

we were doing our very best to ascertain Chinese intentions

and were beavering away at all efforts to secure Mr. Grey's

release. Lord Shepherd said he could not be optimistic

that we would succeed. All he would say was that last

week, after his meeting with Shen P'ing he was extremely

depressed; but since then there had been a few signs which

had led him to believe that there was a faint glimmer of

hope. The glimmer was, however, very faint and he would

not wish to raise hopes too high.

6. Both Mrs. Grey and Mr. Maw, after thanking Lord Shepherd

for the information, assured him that they would treat

what he had told them in the greatest confidence.

CONEET !TIA!

Air Mew

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