SECRET

Peking telegrun No. 3 to FCO

ra

-3.

be strong United Kingdom domestic pressures either for release of

ining News workers or for undesirable retaliatory action against the Chinese. A policy of no concessions means 2 more years of really bad Sino-British relations, which will naturally affect position of all the other British subjects in trouble here.

7. No course is attractive but balance is strongly in favour of course (a). It would be for consideration whether we should release News workers separately or as part of a larger number, say for Chinese New Year. I would favour the second. But whatever view is taken of this secondary question, may I urge that an early decision is taken on the main issue on the light of the new situation.

FCO pass to Hong Kong.

Mr. Cradock

[Repeated as requested]

DEPARTMENTAL DISTRIBUTION

F. East. D.

Hong Kong Dept.

Consular Dept.

News Dept.

1.R.D.

EEEEE

SECRET

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