b)

(There may well still be a case for the premature

release of the eleven, but now it can be properly

based only on the desirability of shortening Mr. Grey's

ordeal or of making some general gesture of readiness

for accommodation in Hong Kong.)

The statement should help to allay the apprehensions

which the Governor of Hong Kong has understandably

expressed in the past about the situation with which he

would be confronted were he to release the eleven

prematurely and the Chinese were not to match this by

the release of Mr. Grey. (However the Governor has in

practice accepted, in part as the result of a communication

through the covert channel last February, that the release

of the eleven was a firm price for Mr. Grey.)

In short, the statement has facilitated our handling of the

case in that whether the decision is to let matters take their

course in Hong Kong until October or to press for the premature

release of the eleven, we can proceed on either course in a

Bomewhat easier frame of mind.

6. As far as the public is concerned I think we should treat

the statement unspectacularly. In press criticism of our

handling of the case, the December statement has been generally

interpreted as meaning that the Chinese would release Mr. Grey

if the eleven were released. Though we have struck a note of

caution with those directly concerned we have been careful not

to emphasise our doubts in public. If we now give prominence

to Ma's statement we shall certainly be asked whether we accept

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