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did not specifically guarantee Mr. Grey's release, nevertheless

we have assumed that this was indeed a firm price for his

release. As for the newsworkers, tan of them were due to be

released with full remission in September 1969 and the remaining

one, Wong Chak, in February 1971.

3.

Following this statement, the Chinese indicated through

covert channels that they expected a reply to their 'offer'

from the Hong Kong Government. We were not sanguine about the

chances of success but it was felt that rather than wait until

September we ought to explore any opportunity of securing

Hr. Grey's release.

The Governor of Hong Kong was instructed

to make contact with the Chinese to explore their intentions.

After discussions he offered to release the Chinese neweworkers

either to China or to Macao for the remainder of their

sentences.

This offer was not taken up by the Chinese and we

have assumed from their silence that they have rejected it.

These covert negotiations with the Chinese have never been made

public and should not be mentioned to the Grey family.

4. The Governor in Hong Kong then set in motion a review of

the cases of prisoners serving sentences longer than four

years. The Board of Review has now completed its review of

the first batch of cases and an announcement was made on 9 May

that the sentences of eleven prisoners, including Wong Chak,

have now been reduced from five to three years. As a result

Wong Chak is now due for release on 4 October this year. Thus

all eleven newsworkers are due for release by the first week

of October. The text of the statement by the Hong Kong

Government (Hong Kong telegram BIS No. 8), and a selection of

comment in the British press are attached.

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