CONFIDENTIAL

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from the Chinese authorities, and

release or rescind the sentences.

All this would immediately be inter-

preted in Hong Kong as a sign of

weakness.

The local people would

lose faith in our determination to

resist, on their behalf, pressures

exerted on Hong Kong by the Chinese. (c) Consequences for other British zxkizz

subjects;

(1) The attempt to secure the

(11)

release of the news workers

by holding Mr. Grey is a

cynical case of the Chinese

attempting to obtain ransom.

If the Chinese are successful

in these tactics they will be

encouraged to try the same

methods towards other British

subjects in futuro.

(111) Apart from the Chinese, other

governments may also come do

the conclusion that they can

exert pressure on us by similar

methods. This could have

serious consequences for British

subjects and especially the

press in many countries.

Hopes for Mr. Crey's Release

4. What now are the proposals for Hr. Grey's

release?

Ten of the eleven news workers are in

any case due out with full remission in

September.

As you will have seen from Saturday s

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