(c)

The Krogers are in a very special and restricted

category of prisones, whereas the newsworkers are

eleven among 254 communists who are serving sentences

for offences arising out of the 1967 troubles. (2) Even if Mr. Grey is released, there are still twelve

other British subjects Retained in China. Concessions

10.

to the Chiness over Mr. Grey might encourage the Chinese

to put a price on other heads, something which they have

not hitherto done and which we would want to avoid.

All this seems to me to provide an adequate justification to the public here for refusing to accept a deal over Mr. Brooke as good grounds for proceeding to a deal over Mr. Grey. Such

criticism as we would incur for dragging our feet is likely

to be much less damaging than the criticism if it became known

that the Governor had been overruled on an issue which he

regarded as central to the security of Hong Kong.

11. A postscript.

accepted I would nevertheless see some advantage in our telling the Governor that if he were to decide, as September approaches, that a time had come when the premature release of the

newsworkers by a matter of a few weeks would be regarded by the Chinese as a gesture of accommodation rather than an act

of weakness, he should not exclude this.

If the foregoing line of argument is

Copies to:

Private Secretary Mr. Godden

Mr. Baker

Sir A. Galsworthy

Sir T. Brimelow

Mr. Carter

Mr. Giffard

SECRET

8

(James Murray)

18 June, 1969.

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