CONFIDENTIAL

take their course in Hong Kong until September:

(a) The effects on Mr. Grey's health of this prolongation

of his ordeal.

Present indications are that he

should be able to bear the strains until September.

But this is a matter which we must keep under constant

review, on the meagre evidence available to us.

(b) Possible difficulties with parliamentary and public

opinion in this country. I think, however, that we

should find that public opinion here is by no means

unanimously in favour of concessions to the Chinese.

We have so far refrained from using to the full the

strong arguments for refusing to pay ransom in Hong

Kong, lest this would stimulate indignation against

the Chinese and lead to increased pressure for

unhelpful measures against them in this country

pressures which Mr. Long explained to the Secretary

of State he had had to cope with in Fleet Street.

It is difficult to predict how public opinion might

move in coming weeks. Once it becomes public know-

ledge in May that all eleven newsworkers are due to

be released in mid-September, it may become progressively

easier to hold the situation as we approach that date.

The possible effects on Chinese policy if we fail

to make what they would regard as any significant

gesture towards them over the Grey case. Mr. Cradock has in the past argued from Peking that if we simply let the eleven newsworkers out in September the Chinese

(c)

CONFIDENTIAL

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