is no doubt that public knowledge of a bargain with the

Russians over Mr. Brooke will pose problems for us in the

SECRET

- 5 -

I

SECRET

handling of the Grey case, possibly with the Chinese but

almost certainly with sectors of the public here.

(a) The Chinese are bound to be impressed by our willingness

(b)

to bend the law in respect of the Krogers and,

particularly in the sour climate of Sino-Soviet

relations, to contrast it with what has been said to

them about the impossibility of prematurely releasing

convicted prisoners in Hong Kong.

to further pressure by them in the

This may well lead

matter of the whole

problem of convicted "confrontation" prisoners in Hong

Kong, and possibly even to attempts to strike bargains

for other British subjects now in detention in China.

We must accept that there is some risk that they might

put up their price for Mr. Grey to include convicted

prisoners other than the newsworkers. But I personally

doubt if they will do so in view of the firmness with

which they have established the link between Mr. Grey and

the newsworkers. (In any case, all this is perhaps

rather a possible argument for firmass and delay in the

Brooke case rather than for immediate concessions in the

Grey case.)

Those in this country directly involved in the Grey case

(1.e. Reuters, certain sections of the press and the Grey

family) may press the more strongly for an early bargain

with the Chinese. But I am by no means certain that

public opinion generally would come to the conclusion that

because we had in very special circumstances made

SECRET

- 6-

1

SECRET

concessions to the Russians about the Krogers, we

should necessarily follow this up by caving in to the

Chinese over the convicted newsworkers. Moreover,

there are important and relevant differences between

the Brooke and Grey cases which could be demonstrated, some with the
general public, others more selectively. The Governor makes the point
that the two cases carry very different implications for the security of
the territories

9.

concerned.

It may be helpful if I list the other respects

in which I see important differences.

(a) What is envisaged in the case of Mr. Brooke is in effect

an exchange. The Chinese have throughout refused an

exchange in the case of Mr. Grey. Their terms are the

release of the newsworkers unconditionally in Hong Kong. (b) We shall in
any case have in effect complied with these

terms in a matter of some thirteen weeks from 1 July.

Thus on the terms the Chinese have put to us, the end of

Mr. Grey's ordeal is in sight.

(c)

The bargain over Mr. Brooke would involve the exchange of convicted
prisoners (albeit for offences of very different seriousness). In the
case of Mr. Grey on the other hand we should be releasing convicted
prisoners in exchange for someone who has been accused of no
irregularity. (d) The difference in numbers involved is important:

a married

couple for one in the case of Mr. Brooke; eleven for one

in the case of Mr.

Grey.

SECRET

- 7-

1.

SECRET

(e) The Krogers are in a very special and restricted

category of prisoners, whereas the newsworkers are

eleven among 254 communists who are serving sentences

for offences arising out of the 1967 troubles.

(f) Even if Mr. Grey is released, there are still twelve

other British subjects detained in China. Concessions

10.

to the Chinese over Mr. Grey might encourage the Chinese

to put a price on other heads, something which they have

not hitherto done and which we would want to avoid.

All this seems to me to provide an adequate justification

to the public here for refusing to accept a deal over Mr. Brooke

as good grounds for proceeding to a deal over Mr. Grey - Such

criticism as we would incur for dragging our feet is likely

to be much less damaging than the criticism if it became known

that the Governor had been overruled on an issue which he

regarded as central to the security of Hong Kong.

11. A postscript.

If the foregoing line of argument is

accepted I would nevertheless see some advantage in our telling

the Governor that if he were to decide, as September approaches,

that a time had come when the premature release of the

newsworkers by a matter of a few weeks would be regarded by

the Chinese as a gesture of accommodation rather than an act

of weakness, he should not exclude this.

Copies to: Private Secretary

Mr. Godden

Mr. Baker

Sir A. Galsworthy

Sir T. Brimelow

Mr. Carter

Mr. Giffard

James May

(James Murray)

18 June, 1969.

SECRET

- 8-

1

Ukr

FEC 16.

Far Eastern Department

pajanyo

3 July, 1969.

I enclose a copy of an article which appeared in the Sunday Express of
29 June reporting the views of a Hong Kong Government official on a
"deal" with the Chinese over Anthony Grey.

2. Apart from the fact that the article contains a number of errors of
fact the exaggerated toue in which it is written "relations with China
have tremendously laproved in the past six months" and "there is no
doubt that China has acted honourably" is not very helpful at this stage
in the Grey 0882. It would sean likely that the authors of the article
had received assistance in their detailed reconstruction of events in
Sino/British relations this year and I presume it was the sans official
whose opinions are reported in the opening paragraphs.

3. I realise from the problems which we encounter with the press in
London how difficult it is to preserve some balance in reports on the
Grey case. But I hope that local correspondents in Hong Kong can be
encoureged to exercise some restraint when reporting the case during the
next three months.

R. J. T. Nolaren, Esq.,

HONG 106.

(C. Wilson)

Copy to:

J. N. Allan, Esq., Peking.

MR M

Мизкач

Tsx. 4/68.

ne of the

With the Compliments of the

Political

R

Adviser JUL 1769

Hong Kong FEL 130

12/

Political Adviser

SECRET

Mr. K.C. Jay telephoned on Tuesday, 10th June to say that he would like
to see me in the near future: accordingly I made arrangements to see him
the next day (wednesday, 11th June) at 11 a.m.

854

Referring to our meeting on 4th June, Jay said that he had now received
a message directly from Prize Minister CHOU En- lai: on the surface, Jay
warned, the message was not very good but if studied carefully - and
reading between the lines it would be seen to be favourable. Briefly,
the Prime Minister allegedly had written that he had been very
disappointed at the unsuccessful attempts to negotiate with the H.K.Ġ.
over the question of the newsworkers and Anthony Grey: it seemed to CHO☺
that (as usual) Chairman MAO had been right and he (CHOU) had been
wrong: that dealing with the imperialists was a matter fraught with
difficulties as they would see only their point of view and act
accordingly. In spite of this rather gloomy appreciation of the
situation, however, CHOU had then gone on to say that nevertheless he
would appreciate Jay's assessment of the present situation in Hong Kong
and any advice that Jay would care to offer as to possible future
action.

3.

Jay's explanation of this message from CHOU was that firstly he had no
alternative course but to say that Chairman MAO was right: equally, it
was clear o Jay that CHOU was disappointed that nothing spacific had
come from the Chinese proposals for a deal over Grey: in particular

in particular - and this is pure Jay speculation Jay felt that the Prime
Minister vas disapminted or even frustrated that he had not received
information earlier from us that we vere considering the setting up of
the long-tern Board of Review to consider confrontation prisoners, etc.:
if we had given this prior notice, Jay feels that it would have given
CHOU time to prepare Chairman" MAO for a "change in policy", possibly
leading to special arrangements over the newsworkers. At this stage I
repeated, as I have done so often, the line that there was no question
of "a deal", that the setting up of the Board of Review was a reflection
of our assessment of the present security situation, etc. etc. Jay once
again said that he certainly understood (with difficulty) our stand on
this but was sure that Peking, and in particular Prime Minister CHOU and
Chairman MAO, would never be able to follow this line of reasoning. Jay
believes that a ray of hope lay in the request from CHOU for Jay's
assessment of the present situation and for his advice as to the future.
Jay is convinced that the message really boiled down to this request and
her believed CHOU really wishes the channel to remain in being but that
it should be used more meaningfully.

4.

-

Jay said that he had already replied to CHOU CHOU's request was written
in such a way that he clearly needed an urgent ansver. Jay said that his
reply was along the lines that, whilst Chairman KÃO vas as usual
undoubtedly right, nevertheless he vas equally convinced that CHOU was
not wrong: that he was of the opinion that the channel had been of
benefit to Peking as vell as the H.I.G. and that it could continue to be
of value. He claimed that be again repeated the advice t hat now that it
was known that the 11 newsworkers would definitely and legally be
released by

/contd.

SECRET

SECRET

October, it was very much in China's interest that Grey should be
released before the last newsworker (WONG Chak) vas released from prison
in October: he had argued that the detention of Grey had attracted a
great deal of publicity not only in Hong Kong and Britain but all over
the world and that by releasing Krey soon the Chinese Government would,
he expected, appear in

favourable light.

5.

W

my new

Tory; whi

Find be

And even

Mix

Later in the discussion Jay spoke briefly of the reception which FEI
Yi-aing had received in Peking and in particular by CHOU En-lai: it was
Jay's understanding that FEI had been severely criticised on the way in
which he and his hench- had directed the confrontation with the H.K.G.
and that he was also criticised for his way of living in Hong Kong which
in Peking's view was not appropriate for a senior communist.

6.

As promised at our last meeting, I handed Jay a list of the 11
newsworkers showing their "earliest dates of release":

he was clearly pleased to receive this information and said that he
would pass it on to the appropriate authorities.

7.

As agreed with you and H.E. I then spoke to Jay briefly about Lord
Shepherd's visit. I emphasised that it was really a routine visit, part
of a long and arduous world tour that Lord Shepherd was undertaking.
Lord Shepherd had come to Hong Kong after attending the SEATO meeting in
Bangkok and, among other things, had taken a short rest here. He had, of
course, held discussions with H.E. and senior official and unofficial
members of Government and undertaken a fairly full programme: this in
spite of the fact that he was rather unwell during his stay in Hong
Iong. There was general agreement on matters discussed and no radical
changes were proposed: his main interests were to do with labour
legislation priorities and technical education.

8.

Other matters discussed were:-

I explained that Hr. Healey

(1) Visit of Mr. Denis Healey: would only be in Hong Kong for one full
working day and that, although he would be having brief discussions with
H.E. and C.B.F., the main purpose of the visit was to visit the troops;

(2) Ir. Denson's visit to Shanghai, etc: I said that we were pleased to
learn of the approval given to Hr. Denson to make these visits - an
encouraging sign;

(3) Action against 17 officials of the Waterworks Union: In discussing
Das Jay said that his information was to the effect that neither Peking
nor the local communists regarded this as a serious matter and that we
could assume that the communists would not be "too difficult' over this;

(4) South China Iron Works: Jay handed to se copies of documents, mainly
letters from the Legal Department, about these land transactions. It was
Jay's opinion and that of the Bank of China that the land exchange had
already been completed

/contd...

SECRET

SECRET

except for one or two sinor legalities, along the lines of a specific
and definite offer made by Mr. McRobert of the Legal Department in 1960.
It was clear that this had been a very Long drawn out affair with delays
on the part not only of the solicitors for the South China Iron Works
but also on the part of Government: as late as April 1964 Mr. McRobert
had confirmed that Government would abide by the proposals made to the
S.C.I.V. in 1960. Included in the documents vas a copy of a receipt for
money paid to the Treasury for the land conversion. These papers are now
with P.A.C.S.(L), who will be making comments in the next few days.

le

(J. Cater)

13th June, 1969.

C.C.

Mr. J. Murray, CMG (London) Mr. J.B. Denson, OR (Peking) D.S.D.
H./A.I.G. I.8.5.

SECFET

PUBLIC RECORD OFFICE

Group...

Fco....

21..

Class.

Piece.

4.8.2.......

not yet-tamustone

Following document(s) trap

viterned & closed

Folio 253 - Letter 1/7/69

"

E/253

"

4/6/69

and closed until . . . .

Ky Holder 6.7.99

2010

?

+

CYPHER/CAT A

CONFIDENTIAL

TOP COPY

рафент

IMMEDIATE FOREING AND COMMONWEALTH OFFICE TO PEKING TEGRAM NUMBER 207

24 JUNE 1969.

(FED 13

2/7

B

+

CONFIDENTIAL.

ADDRESSED TO PEKING TELEGRAM NO 207 OF 24 JUNE REPEATED FOR INFORMATION
TO HONG KONG, WASHINGTON AND POLAD SINGAPORE.

ANTHONY GREY.

GREY'S LATEST LETTER TO HIS MOTHER CONTAINS THE FOLLOWING PASSAGE: QUOTE
I AM SO HAPPY TO TELL YOU THAT SOME CHANGES WERE MADE IN MY DAILY LIFE
ON 30 MAY. ON THAT DAY, I WAS TOLD THAT FOR AN HOUR AND A HALF EACH
MORNING AND AFTERNOON, I COULD LEAVE MY ROOM, IN WHICH I AM LIVING, AND
GO TO EITHER THE COURTYARD OR TO THREE ROOMS UPSTAIRS: I COULD ALSO HAVE
MY PORTABLE RADIO, AND ACCESS TO ALL MY BOOKS. IN ADDITION I WAS TOLD I
COULD CLOSE THE DOOR OF THE ROOM IN WHICH I SPEND THE MAJORITY OF MY
TIME. THE PERIODS IN WHICH I AM ALLOWED TO GO OUTSIDE OR UPSTAIRS ARE
10.30 A.M. TO MIDDAY, AND 4 P.M. TO 5.30 P.M. MY WALKING IN THE
COURTYARD IS NOW NOT ENTIRELY SUPERVISED, SO I AM IN THE YARD ON MY OWN,
AND THIS IS MORE RELAXING, AND LISTENING TO THE RADIO TOO, MAKES A VERY
BIG DIFFERENCE TO MY DAILY LIFE. UNQUOTE.

2. HE INDICATED THAT HE WAS LISTENING TO MUSIC AND HAD HEARD THE
COMMENTARY ON THE THAT HE IS LISTENING ALSO TO THE BBC NEWS

CONFIDENTIAL

QUOTE POP UNQUOTE

DERBY, WE ASSUME THEREFORE BULLETINS.

/ 3. THIS IS

+

וּ.

CONFIDENTIAL

2

-

3. THIS IS GOOD NEWS AND MARKS A CONSIDERABLE IMPROVEMENT IN GREY'S
CONDITIONS OF CONFINEMENT. FROM THE CHEERFUL TONE OF THE

REST OF THE LETTER IT IS CLEAR THAT THE CHANGES HAVE IMPROVED HIS
MORALE. WE MUST HOPE THAT THE CHINESE WILL PROGRESSIVELY RELAX THE
RESTRICTIONS ON GREY'S FREEDOM AS HIS RELEASE APPROACHES, ON THE LINES
ENVISAGED IN PARAGRAPH 2 OF HONG KONG TELEGRAM NO. 2258 OF 11 DECEMBER
1968 (NOT TO ALL). AS THE CHINESE DECISION FOLLOWS THE ANNOUNCEMENT OF
THE REDUCTION OF WONG CHAK'S SENTENCE AND MORETON'S INTERVIEW WITH THE
CHINESE CHARGE D'AFFAIRES, IT WOULD APPEAR THAT THE CHINESE HAVE TAKEN
THE POINT THAT ALL THE NEWSWORKERS WILL BE OUT BY EARLY OCTOBER AND ARE
THEMSELVES PREPARING FOR THE

RELEASE OF GREY.

4. IN VIEW OF THE GREY FAMILY'S PAST INDISCRETIONS WITH THE PRESS AND IN
ORDER TO AVOID A DRAMATIC PRESENTATION OF THE LETTER, REUTERS

PERSUADED MRS. GREY TO ALLOW THEM TO RELEASE THE INFORMATION IN A
QUIETLY WORDED STATEMENT. THIS WAS ISSUED TODAY.

STEWART

FCO/WHITEHALL DISTRIBUTION:

P

FAR EASTERN DEPT

CONFIDENTIAL

+

I

I

I

Registry No. F FF

DEPARTMENT

* Date and time (G.M.T.) telegggprshould

reach addresseC(8)

эх

Xx

#

24/6.

NOTHING TO BE WRITTEN IN THIS MARGIN

(Date)..

Despatched

120

--------pakokupH

----‒‒‒‒ading...NIH------.

SECURITY CLASSIFICATION

Top Secret Sheet

Confidential

Resched Unclassified

PRIORITY MARKINGS

Flash Immadiara. Priority Routine

PRIVACY MARKING

In Confidence

En Clair. Cólo Cypher

Draft Telegrøn to:-

PERING No. 207

(Date) _34/6.

And to:-

CYPHER

[Security if any

Security classification

[ Privacy marking

[Codeword-if any)

Addressed to

]

telegram No. 207

And to

Hi, shu-M JAA

CLLLLLLLLLL

repeated for information to

Routine to

CONFIDENTIAD

PEKING

24/6

----- 17

(date)

11-1----11י

WASHINGTON,

Labbat------as, crass banque: +

RONG KONG

POLAD SINGAPORE

PRI LA LA LA Spa Ho▬▬▬DIL DILJOJILLLOJ

Repeat to:-

WASHINGTON POLAD SINGAPORE

Saving to:-

Distribution:- FCO/WHI

FED

HKD

CONSULAR DEPT. NEWS DEPT. IRD

Copies tack- IFD

Saving to

Anthony Grey.

Grey's latest letter to his mother

contains the following passage:

"I am so happy to tell you that some changes were

made in my daily life on. May 30th.

On that day,

In

-----וי

I was told that for an hour and a half each morning

and afternoon, I could leave my room, in which I

am living, and go to either the courtyard or to

three rooms upstairs; I could also have my

portable radio, and access to all my books.

addition I was told I could close the door of the

root in which I spend the majority of my time.

The periods in which I am allowed to go outside

or upstairs are 10.30 a.m. to midday, and ↳ pim. to 5.30 p.m. My walking
in the courtyard is now

L

not entirely supervised, so I am in the yard on my

own, and this is more relaxing. And listening to

CONFIDENTIAL

the radio too, makes a very big difference to my

daily life."

2.

He indicated that he was listening to "pop"

music and had heard the commentary on the Derby.

We assume therefore that he is listening also to

the BBC news bulletins.

3.

This is good news and marks a considerable

improvement in Grey's conditions of confinement.

From the cheerful tone of the rest of the letter it

is clear that the changes have improved his morale.

We must hope that the Chinese will progressively

relax the restrictions on Grey's freedom as his

release approaches, on the lines envisaged in

paragraph 2 of Hong Kong telegram No. 2258 of 11

December 1968 (hot to all). As the Chinese

decision follows the announcement of the reduction

of Yong Chak's sentence and Moreton's interview with

the Chinese Chargé d'Affaires, it would appear that

the Chinese have taken the point that all the

newsworkers will be out by early October and are

themselves preparing for the release of Grey.

4

In view of the Grey family's past indiscre-

tions with the press and in order to avoid a

dramatic presentation of the letter, Reuters persuaded

Mrs. Grey to allow them to release the information in a

quietly worded statement.

This was issued today.

Juan Jone

(24

Juwe

0327 17 E.W.A 5.,LIO. 164M 3-67. CONFIDENTIAL

NOTHING TO BE WRITTEN IN THIS MARGIN

MR. MURRAY

With the Compliments of the

Political Adviser

Hong Kong

130

The 11 "Newsworkers" : earliest dates of discharge

Ini iration provided by Commissioner of Prisons 6th June_1969

September 3rd 1969

1.

W Tai Chau

2.

LI Siu Hung

3.

CHAK Nuen Fai

4.

POON Wai Wai

5.

CHAN Yim Kuen (female))

6.

LAW Yuk Wo

7.

WONG Yat Lau

8.

CHAN Chi Fung

g.

NG Choi Shing

10. WONG Ling (female)

September 6th 196P RECEIVED IN

IR G 12/N9.50 26 JUN 1969

FC 130/1

September 12th 1969

October 3rd 1969

11.

WONG Chak

A.F. MADDOCKS Political Adviser 9th June, 1969

Distribution

H.E.

Hon.C.S.

D.S.

Hon.A.G.

P.A.(2)

A.P.A.(4)

H./A.R.G.

P.A.C.S.(S)

C.of P. C.P. D.S.B.

F.C.O. London

PEKING

WASHINGTON

D.I.S.

R.1.0.

A

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S. J. Foleston $y 2016

Mo Carter 2576

To Warfon 2016. To Boyd/

По

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----

Reference.

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(841) - (842).

The internal evidence in

Thera

reports ( particularly the reiterated

h

question

Gu

1. Why

braved wi

Ihm mattere

Hong Kong shout or have

The negotiation

through the Jay channel) points strongly,

I

i

9 think, 1

a deduction

12 and

G

thoroughly piqued Jay (and

possibly Le Cho-chih) who

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