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(a) I agree that nothing less than the release of the eleven
newsworkers in Hong Kong will secure the release of
Mr. Croy. I do not think that the Chinese will release
Mr. Grey promaturely. But I am reasonably confident
that tho release of the oloven will be followed by the
release of Mr. Grey, since I think it would be difficult
for the Chinese to change the price to which they are
publicly committed (but see also paragraph 7(a) bolow).
(b) I find it difficult to understand the alleged puzzlement
of the Chinoso at the recent reductions in sentences and
the embarrassment of Chou Enl-Lai.
(c)
I share the Governor's dislike of both courses A and B.
The objections to course A are strong. As I have argued
in past submissions, I believe that there is no doubt that
open defect in this matter would encourage the Chinese to
conclude that, when subjected by them to sufficient
pressure, wo shall always be prepared to bend the law for
political ends. They would consequently be encouraged to
try the same tactics when it suited them.
(a) More important, however, than the conclusions drawn by the
Chinese Government, are those drawn by the inhabitants of
Hong Kong. As long as the inhabitants of Hong Kong believe
that we are prepared to resist, on their behalf, pressures
from the communists, we gan continue to run the Colony.
If our determination to do so were put seriously in doubt,
our position would become progressively more difficult.
"kowtow" over Hz. Groy would be interpreted as a rebuff
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