has kept insisting that release in Hong Kong itself is

out of the question, in the hope that if we could convince

the Chinese of our determination on this point, they might

retreat from their intransigence. But to no avail; and

I think that we must now conclude that our offer has been

rejected.

5.

Aspects of the covert discussions are, however,

relevant to our future decisions.

In a message supposed

to emanate from Chou En-lai the Chinese offered, in return

for a settlement of the Grey case, unspecified improvements

in Sino-British relations extending both to other British

subjects in China and to trade.

Balancing the benefits,

another message contained a veiled threat: if it was our

intention to release the ten of the news workers in due

course in September and then try to trade Mr. Grey for the

eleventh, these tactics would not work.

ARGUMENT

6. If we conclude that our offer has been rejected, we

must now proceed on the basis that the Chinese intend to

hold on to Mr. Grey until all eleven news workers have

been released. Ten of them are due for release with

remission next September. The eleventh, Wong Chak,

(sentenced to five years imprisonment in September 1967)

is not due out with full remission until February 1971.

But the Governor has now agreed to set in motion an exercise

/designed

- 3 -

SECRET

SECRET

designed to ensure his release by September of this year

without appearing to bend the law in a flagrant manner.

Essentially he plans to review all the cases of prisoners

sentenced to terms longer than four years. All being

well, this should result in a reduction of Wong Chak's

sentence, though it may be some weeks before this can be

made public knowledge. We are, however, justified in

proceeding on the assumption that all eleven news workers

will now be out by mid-September.

It

We accept that the immediate release of all the news

workers would almost certainly result in the release of

Mr. Grey. Will this still be the case in September?

might be argued that they are a declining asset; that

their value to the Chinese diminishes as September approaches;

and that their release then would therefore be regarded by

the Chinese as of practically no value. However, our

experience of the Chinese suggests that they will not be

at a loss to present the release of the eleven, whenever

it comes, as a "victory".

extent of having held on to Mr. Grey until we have "stopped

the persecution of patriotic news workers in Hong Kong".

While there has been some variation over numbers the Chinese

have always justified their detention of Mr. Grey exclusively

in the context of the treatment of their news workers in

Hong Kong. We think it unlikely that they would start,

after the release of the news workers, to hold him against

a wholly different category of prisoner.

They will have prevailed to the

- 4-

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18.

SECRET

1

8. I conclude therefore that the choice in practice

confronting us is:

9.

(a) to bring the Governor to agree now to the immediate

release of all eleven news workers in Hong Kong in

return for appropriate assurances that this will

result in the release of Mr. Grey; or

(b) to let matters take their course in Hong Kong with

the reasonable expectation that Kr. Grey will be

out in September.

The dangers of the first course are clear. The

Governor has throughout opposed the premature release of

convicted prisoners in Hong Kong, We agree with him that

such a move would damage public confidence in the Colony;

would be interpreted by the communists as an indication

that we lacked firmness; and, by providing a precedent

of willingness to disregard the courts in a flagrant manner

and for a political purpose, impair the future credibility

of the sanction of imprisonment. The likely encouragement

to the Chinese to adopt a similar policy again, if they now

succeed, must also be taken into account.

10. The difficulties in the way of the second course are

also formidable:

(a) Will Mr. Grey's health stand up to this prolong-

ation of his ordeal? This is a point we continue

to watch very carefully. Though his conditions

of detention remain highly unpleasant, there has

been a slight improvement recently to the extent

/that

- 5-

SECRET

SECRET

that he is now allowed upstairs to his books.

Careful medical examination by Chinese doctors

in December appears to have relieved his mind

about his physical health; and his recent

letters to his mother, while critical of H.K.G.,

have been relatively cheerful and extremely

balanced.

(b) Can we convince Parliament and the public that

our refusal to accept what is now generally

believed to be the Chinese price is justified?

Much must depend on Reuters. Mr. Long, the

General Manager, while fully sympathetic to our

difficulties in Hong Kong, has been pressing us

privately for the immediate release of the news

workers. But he has said that Reuters would not

wish to embarrase us by taking up this position

publicly. It is difficult to predict how public

opinion might move in coming weeks.

As we

approach September it should be easier to hold

the situation

-

provided that there is a reasonable

expectation that the affair will be settled by

September at the latest. (For this reason the

sooner the judicial process referred to in

paragraph 6 above is completed and it becomes

public knowledge that all eleven news workers will

be coming out in September, the better). Meantime

we are not without ammunition to meet public

/criticism.

- 6 -

SECRET

SECRET

11.

criticism.

For tactical reasons we have not

wished to stimulate indignation against the

Chinese lest this would lead to increased

pressure for unhelpful measures against them in

this country. We have therefore refrained from

using to the full the strong arguments for refusing

to pay ransom in Hong Kong. We have, however, a

good case and could deploy it if necessary. More-

over, if need arose, we could make public the

continuing refusal of the Chinese to entertain

the idea of a reasonable solution through deport-

ation of the news workers to China.

(c) Will continuing refusal to meet the Chinese terms

be likely to result in a hardening in their policies

towards Hong Kong? We do not know what precisely

is happening among the top leadership in Peking.

There are some indications of serious policy

differences.

However, since the beginning of

1968, even at moments of extreme internal agitation,

there has been no indication that the leaders were

prepared again to jeopardise their chances of

recovering their following in Hong Kong or, more

important, their large foreign exchange earnings

from the Colony by further radical initiatives.

We do not suppose that they would take such a risk

now.

Despite the difficulties therefore, my conclusion is

/that we

- 7 -

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SECRET

that we can probably hold the position until September.

If this is so, what we have to decide is whether the

risks of the premature release of the eleven news workers

in Hong Kong continue to outweigh the advantages of an

immediate settlement of the Grey affair. It may be felt

that the argument has laid undue stress on the factor of

public confidence in Hong Kong. It is always difficult

to pronounce with certainly on the likely effect of any

particular action in Hong Kong. Nevertheless we must

leave ourselves a margin of error since any action which might

lead the inhabitants of Hong Kong to conclude that we have

lost our nerve could very quickly become disastrous.

Admittedly there would be much to be said for taking risks

in Hong Kong and indeed for swallowing a lot of our pride

if we could really settle all outstanding cases of British

subjects not only Mr. Grey. But the prospects of this

are remote. There is little to indicate that the remaining

British subjects are being held as hostages. They, like

the majority of other foreigners in trouble in China, are

held for a variety of alleged misdemeanours on their part.

Their cases would only be resolved slowly and with difficulty.

If we were to try to extend negotiations for the release of

Mr. Grey into a comprehensive bargain covering other British

subjects as well, I am sure that this would not help the

latter and would impede any progress over Fr. Grey. (This

is not to rule out the possibility that the solution of the

Grey problem might lead to some slight improvement in the

-

/atmosphere

- 8 -

SECRET

SECRET

atmosphere of Sino-British relations, which could in the

longer term enhance the chances of other British subjects;

but we should not expect any early results). Thus the

only immediate dividend we can expect from the release of

the news workers is the release of Mr. Grey; and,

important though it undoubtedly is on humanitarian grounds

to terminate his ordeal as soon as possible, this does not

seem to me to justify our pressing the Governor to take

what he regards as an unacceptable risk in Hong Kong.

Copies to:

Kr. Godden

Mr. Baker

Sir A. Galsworthy

Sir J. Johnston

Mr. Carter

Jan May

James Murray

28 March, 1969

− 9 -

SECRET

In view

of

RESTRICTED

рут

$220,

Far Eastern Department,

( 13 C/1)

6 May, 1969.

B.B.C. and Grey

Please refer to Arthur Maddocks' letter of 20 March to Colin Wilson
about the Berger broadcast. For the record you will want to know that we
did speak, energetically, to the B.B.C. on 27 March.

(J. D. I. Boyd)

R. J. T. McLaren, Esq.,

HOW KONG.

RESTRICTED

NOTHING TO BE WRITTEN IN THIS MARGIN

་་

WEL 51-7406

Restrictio

FE

Fec 13 c/1

from for

RJT Mc Laren Esq

Home Kms

BBC and Grey.

Please refer in Arthur Maddocks'

celûr of

! 20 March to Colin

Wilson: about

The Berger

broadcast. For in read you

will want to know

that

we did speak, energetically,

15 The BBC

on 27 March. A

6/5

Private & Confidential

The Rt Hon Michael Stewart CH MP Secretary of State for Foreign and

Commonwealth Affairs

Foreign and Commonwealth Office London SW1

REUTERS

29 April 1969

Extere pe retum

6s 3014

FEDENN FE Dent for diff. reply from 5/state Ase.

Dear Mr Stewart

FEC 130|1

When you received me on April 1 you encouraged me by saying that you
wished to give consideration to the idea that the Chinese newspaper
workers imprisoned in Hong Kong should be released in an attempt to free
Anthony Grey.

I write to inquire whether you have come to any conclusion on this
point.

I have, since seeing you, become more than ever convinced that the
Chinese in Hong Kong must be released before September if Grey is to be
helped. It seems likely that the Chinese wish for some gesture. To
release the prisoners at the end of their sentence will not be a gesture
and I doubt if the small concession you suggested might be made in
September would be sufficient.

No doubt you saw a report in yesterday's Daily Telegraph suggesting that
the defection of a number of Chinese to Hong Kong last Saturday could
affect Mr Grey's situation. I think that such speculation is unfortunate
but it nevertheless remains that the longer Mr Grey is held the greater
is the danger of incidents producing fresh Chinese demands and fresh
pretexts for continuing to hold Mr Grey, I believe that there is urgency
in moving to bring about Mr Grey's release and I ask you once again to
persuade the Governor of Hong Kong to release the imprisoned Chinese.

Yours sincerely

Casts Log

Gerald Long General Manager Reuters Limited 85 Fleet Street London EC4
Telephone Fleet Street 6060

From the Editor-in-Chief

RI EVO IN

James Murray Esq CMG

218

REUTERS

24 April 1969

497

Head, Far Eastern Department

Foreign and Commonweal uppgice

London SW 1

Dear Mr Murray

FEC 13/1

Ms Boy

·

MM 20 Mure

Grein

Many thanks for your letter of April 21 about Mr Lan. I do not suppose
that there is much to be made out of his suggestions.

Mr Long is travelling in the United States at present but when he gets
back I have no doubt that he will be in touch with you to see whether
there is any further news since his talk with Mr Stewart on April 1.

Yours sincerely

вый нолой

ہیں

Brian Horton Reuters Limited 85 Fleet Street London EC4 Telephone 01-353
6080

りょ

CYPHER/CAT A

FROM ROUTINE HONG KONG

TELEGRAM NUMBER 325

SECRET

SECRET

TO FOREIGN AND COMMONWEALTH OFFICE

APRIL 25/1969

RECEIVED IN

R*..

palo 5/5

Ke 130

207

ADDRESSED FCO TELEGRAM 325 OF 25 APRIL RFI PEKING.

PERSONAL FOR GALSWORTHY,

MY TELEGRAM 232: GREY.

4428

YOU WILL BE GLAD TO KNOW THAT THIS EXERCISE IS PROCEEDING SATIS-
FACTORILY SO FAR AND COMMITTEE YESTERDAY RECOMMENDED REDUCTION OF WONG
CHAK'S SENTENCE TO 3 YEARS, 1.E. ENABLING HIM TO BE RELEASED ON 4TH
OCTOBER WITH REMISSION. REDUCTIONS FOR ABOUT A DOZEN OTHERS

WERE ALSO I UNDERSTAND RECOMMENDED.

2. I AM NOW URGENTLY CONSIDERING DETAILS OF HOW TO PROCEED ON MATTERS
COVERED IN PARAGRAPHS 6 - 9 OF MY TELEGRAM UNDER REFERENCE AND
INTENTIONS WILL BE CONVEYED TO YOU AS SOON AS THEY ARE FULLY WORKED

OUT. THIS IS A QUICK PROGRESS REPORT ONLY.

FCO PLEASE PASS ROUTINE TO PEKING.

SIR D. TRENCH

FILES

F.E.D.

H.K. DEPT.

SIR J. JOHNSTON

MR. MORETON

SIR A. GALSWORTHY

[REPEATED AS REQUESTED]

SECRET

0 130/1

216

Enteropa

ko22/4

21 April, 1969.

I now have the information about Mr. Lan, a letter from whom you
attached to your letter of 19 March.

2.64

It appears that he has been in the habit of corresponding with prominent
publie figures and Government officials on a wide range of matters in
which he feels he can sake a contribution. In Hong Kong he has claimed
to have special relations with local Communiste which would make him
useful as an intermediary. However, on past occasions when he has made
upscific suggestions about matters in Hong Kong it has been evident that
his local contuota were perhaps not as close as he makes out.

The points which he makes in his latter of 14 Karch to Gerald Long about
a general settlement echo a major theme of Communist propaganda in Hong
Kong. For the present we have no indication that an acceptable
settlement could be achieved using the channels suggested by Mr. Lan and
be would certainly not be a reliable intermediary with local Cornuists.

On the case of Tony Grey we have nothing new to report to you since the
Foreign and Commonwealth secretary's talk with Gerald Long on 1 April.

(Janes Murray)

par

Head, Far Eastern Department

Brian Horton, Esq.,

Editor-in-Chief,

RETERS LTD.,

85 Fleet Street,

LONDON, F.C.A.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret

Secret,

Confidential.

Restricted Unclassified.

PRIVACY MARKING

In Confidence

DRAFT Letter

To:-

Brian Horton, Esq.,

Editor-in-Chief, Reuters Ltd.,

85 Fleet Street,

London, K.C.4.

Type 1 +

From

James Murray

Telephone No. & Ext.

Department

On the call,

of Tony Svang

I, now have the information about Mr. La

altuations to yhan

letter from shema

you asked for in your letter of 19 March.

EL

which

£. It appears that he has been in the habit of

corresponding on a wide range of matters in which he

feels he can make a contribution/with prominent public

figures and Government officials, In Hong Kong/he

claimed to have special relations with local Communists

which would make him useful as an intermediary,

However, on past occasions when he has made/suggestions

about matters in Hong Kong it has been evident that his

core portabas

local contacts are not as close as he makes out.

2. The points which he makes in his letter of 14

Cavalot Long

March to Mo.-karig about a general settlement echo a

major theme of Communist propaganda in Hong Kong. At

present

the moment we have no indication that an acceptable

settlement could be achieved using the channels

suggested by Mr. Lad and he would certainly not be a

reliable intermediary with local Communists,

As you will forms from cartier discanime which we have heat the only
concesions on our part which would be likely to help Toy Grey would be
the premature release of the news water. This world undoubted by remain
in any more general arrangement. It would be nly by further major
concesions, at present unacceptable, a on "Confrontatiom' hammers wale
prismes in Hay Kang, that

immediate improvement in the situation of other British subjects
detained in China could be obtained,

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Mr.

I attach a draft reply from you to Horton's letter of 19 March.

2. The relevant information about M2 Lan is contained in 11=

Fly B (609) Slavin's Memorandum of 22 June, 1968

Fains. Our

(I. C. Orr) 18 Apr. '69

The que

C.S. 4C

2600079

30.000-1/67-B52117

No.

TS 1/68

CONFIDENTIAL

423

Entrapano 2014

COLONIAL SECRETARIAT,

LOWER ALBERT ROAD,

HONG KONG.

3 April, 1969.

Dear Jones 134/11

Thank you for your letter

HWB 3/2 of 25 March about Mr. D. R. Lan. I think the enclosed copy of a

memorandum of 3 July 1968 from Special Branch tells you all you want to
know about him. It is plain that he has no particular insight into
communist policy and need not be taken seriously.

You

ove

Athe

(A.F. Maddocks)

пред For chaft reply now

6

Io Haton's letter of 14 Real

James Murray, Esq., CMG, Far Eastern Department,

Foreign & Commonwealth Office,

LONDON, S.W.1.

Encl.

Прив

Ms Our 201814

CONFIDENTIAL

to M. Harten

Reply to M.

прив

0000703

CONFIDENTIADENTIAL

From

Commissioner of Police (D.S.B.)

Ref. (18) in GEN/PC/1029

Tel. No.

Date

234011 Ext. 291

3rd July, 1968.

MEMO

To....

Defence Secretary

(Attention: P.B, Williams, Esq.,)

Your Ref. (64)

doted

L'I

......

CR 17/3371/67

22nd June, 1968.

||

L'II

KR. D.R. LAN

This gentleman has for some years been in the habit of corresponding
with both prominent public figures and Government officials on matters
of interest in which he feels he can make a contribution. These range
from letters to President Lyndon Johnson and other U.S. officials
suggesting solutions to the Kashmir, Vietnam and China problems, to
letters to police in Hong Kong 'on how to solve the riots and bomb
planting incidents in Hong Kong.

2.

Kr. Lan contacted Kr. Bernacchi in late 1967 in an effort to interest
him in his proposals for a settlement of confrontation in Hong Kong. As
a result, Mr. Bernacchi contacted Special Branch

After in March 1968 seeking advice on how to deal with Mr. Lan,

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