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4. I repeated to him the arguments against the premature

release in Hong Kong of the eleven news workers.

The only

point which he made a serious effort to contest was the

immediate effect on public confidence in Hong Kong. I

replied that we regarded this as a much less telling objection

than the long term effects.

5.

Without going into details I explained that we had

grounds for hoping that all eleven news workers would now be

released by September, and that this therefore should be the

terminal date for Mr. Grey's ordeal.

6.

He explained the difficulties he had been having among

journalists in Fleet Street in getting them to behave

reasonably and calmly about the affair but commented that he

thought on the whole Mr. Grey's colleagues in the press have

taken a pretty balanced view of the situation.

7. He said that he himself would now be away out of the

country until about 28 March. In the meantime I could if

necessary be in touch with Mr. Horton who had his complete

confidence. He did not propose at this stage, however, to

inform Mr. Horton about our covert probe. When he got back

from his tour, he would welcome the opportunity to discuss the

problem with the Secretary of State.

James Murray

3 March, 1969.

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