They are alleged

and we believe

the Chinese will settle these cases according to the

particular circumstances.

This is not to say that solution

of the Grey case would not improve the atmosphere of Sino-

British relations and consequently enhance the chances for

the other British subjects; but even so it is not to be

expected that solution of the Grey problem would lead directly

to the release of the remainder. As far as trade is concerned

there are few indications that the state of our relationa

with the Chinese has been reflected in the field of trade.

Our exports to China for January 1969 were the best for three

yeara

15. Balancing the benefits offered in the message from Chou

En-lai, the Chinese have also made two veiled threats.

First,

if we do not encourage the "moderates" in Peking by an early

concession, they may be unable to hold the line against the

"radicals" regarding policy towards Hong Kong. We do not

know of course what precisely is happening in the echelons of

the top leadership in Peking at present. 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

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7

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their following in Hong Kong or, more important, their large

foreign exchange earnings from the Colony, by further radical

initiatives.

We do not suppose they would take such a risk

now. The threat now presented to us appears to be a play-

back of speculation about the relative strength of factions in

Peking carried in the Western press in recent months and one

which the Chinese may therefore calculate would appeal to us.

16. The second Chinese threat concerns likely British tactics

in September 1969. At this point ten of the remaining

newsworkers will be due for release (with remission) from

prison. The eleventh is due out only in February 1971.

The Chinese must be aware that September will bring us the

best opportunity, assuming we are prepared to commute the

sentence of the eleventh newsworker, of settling the Grey

problem in a reasonable time and with minimum political

damage in Hong Kong. For obvious reasons the Chinese would

wish to steer us away from any such course; they want an

earlier and much bigger concession. In any case we are not

tempted to adopt precisely the tactics the Chinese imply to

be in our minds, i.e. to release the ten and try and bargain

for Mr. Grey with the remaining one. As far as we can

anticipate events at this stage, we should find it much more

convenient in September to release the eleven as a group and

throw the ball firmly into the Chinese court.

17. As I have suggested above, it is our view that the

present negotiations are not necessarily over. It is

important that we go back to the Chinese making it clear to

/them

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.

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them that the premature release in Hong Kong of the eleven

newsworkers is ruled out. If we can convince them of our

determination on this point it is just possible that they will

retreat from their present intransigence. It is the view of

the Governor of Hong Kong that we must wait a few weeks to

see if the affair develops this way. We share the Governor's

view and think that a period of about three weeks would be

appropriate.

Possible Failure of the Negotiations

18. If at the end of this period we find that the present

negotiations are a definite failure we shall have to consider

once again the alternatives.

It will then be for

consideration whether we should concede to Chinese pressure

and release all eleven newsworkers in the near future or

whether we should continue to resist.

way are clear.

The dangers of giving

The Governor of Hong Kong has throughout

opposed the premature release of convicted prisoners in Hong

Kong. We agree with the Governor that such a move would

damage public confidence in the Colony; would be interpreted

by the communists as a sign 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.

We remain therefore of the view that the premature release of

al eleven newsworkers, particularly so soon after we had been

/ pressed

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- 9 -

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pressed openly by the Chinese to do so, would be highly

damaging.

19. An extreme alternative is to wait until the release of

the last newsworker in February 1971. This alternative is

highly objectionable on humanitarian grounds and would be

difficult to justify in public.

20.

Our preferred alternative is to wait until September 1969

and, when ten of the newsworkers are released in the normal

way, to throw in the eleventh. We have already put this

proposal informally to the Governor of Hong Kong by personal

telegram. Understandably, he has refused to commit himself

at this stage. It may be objected that by throwing in the

eleventh newsworker we should be breaching the principle of

the sanctity of the courts, which we had striven all along to

maintain. There is an element of truth in this. But from

the political point of view there is a wide difference in

degree between the release of eleven and the release of one.

Having made the other ten serve out their sentences the

Governor would, in commuting the sentence of the eleventh, be

acting from a position of strength, or one that could be

presented as such.

21 It may also be argued that the release at any stage of

the eleven newsworkers will not automatically secure the

release of Mr. Grey. This is of course true. However, the

Chinese are on public record as justifying their continued

detention of Mr. Grey by reference to the "persecuted

patriotic newsworkers",

While there has been some variation

/ over

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over numbers, the Chinese have always justified their

detention of Mr. Grey exclusively in the context of the

treatment of their newsworkers in Hong Kong. We do not

believe that they would start after the release of the

newsworkers to hold him against a wholely different category

of prisoner.

22. The feasibility of the September timetable must of course

depend on what we learn about the condition of Mr. Grey and,

closely related to this, the evolution of public and

parliamentary opinion in this country. The first point is

one which we continue to watch very carefully. At present,

although Mr. Grey's conditions of detention remain highly

unpleasant, we are not unduly concerned about his mental

equilibrium. Careful medical examination by Chinese doctors

in December appear to have relieved his mind about his

physical health; and his recent letters to his mother have

been relatively cheerful and extremely balanced.

I am

23. Whether or not public and parliamentary opinion can

continue to be contained depends largely on Reuters.

due to see Mr. Long this afternoon and hope to have permission

to inform him in general terms about our present negotiations

on Mr. Grey's behalf. This should help to convince him

that we are doing all we reasonably can.

24. We have another card up our sleeves. For tactical

reasons we have not wished to stimulate indignation against

the Chinese, since we were reluctant to be pushed into

unhelpful measures against them in this country. We have

/ therefore

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11

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If

therefore refrained from deploying fully the strong arguments

for resisting Chinese "blackmail" in Hong Kong. We have

however a good case and can deploy it when necessary.

the need arises it is open to us to make public their

continued refusal to entertain the idea of a reasonable

solution through deportation of the newsworkers to China.

The fact that the Chinese cannot persuade their own adherents

to return to the mainland would be particularly damaging to

them.

25. Two forms of objection may well be advanced in

opposition to the views outlined above.

a)

b)

It may be felt that undue stress has been placed on

the need to maintain public confidence in Hong Kong.

It is always difficult to pronounce with certainty on

the likely effect of any particular action in Hong Kong.

Nevertheless it remains the judgment of the Departments

concerned that in cases of doubt we must leave ourselves

a margin of error, since any action which led the

inhabitants of Hong Kong to conclude that we had lost

our nerve could be very quickly disastrous.

In any

case we must listen carefully to the arguments of the

Governor of Hong Kong who is better placed than we to

pass judgment.

It may be argued that the eleven remaining newsworkers

are a declining asset, that their value to the Chinese

diminishes as September approaches and that their

release at that time will therefore be regarded by the

/ Chinese

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12-

[

[

I

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Chinese as of practically no value.

There is an

element of truth in this although our experience of

the Chinese suggests that they will not be at a loss

as to how to present the release of the eleven, whenever

it comes, as a "victory". They will have prevailed to

the extent of having held on to Mr. Grey until we

"stopped the persecution of patriotic newsworkers in Hong

Kong". But the nub of the argument really lies elsewhere.

It is unfortunately true that while the value of these

men to the Chinese may decline as time goes by, the

damage to ourselves caused by their release at any point

between the present and September is likely to remain

fairly constant.

2

James may

(James Murray)

28 February, 1969.

+

Copies to: Mr. Godden

Sir J. Johnston

Sir A. Galsworthy

Mr. Carter

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-

13 -

Mr. Mu

Murray

Mr. Cradock asked me to send you a copy of this letter

21/2/69

Ален

вило

With the Compliments of the

Political Adviser

Hang rộng

Ref. +84/68

cuter.

Jumpe

ра 4m

11

4

+

404

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PERSONAL

ہیں یا نہانے کے

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Office of the British Chargé

'Affaires

PERSONAL

K

Peking

7 February. 1969

!A•

!

30th

bear Arthur,

83

102

7.x 1/64:

There is a suggestion in Hong Kong telegram number 27 (paragraph 3) and
again in the paner on Grey (paragraph 19) m which rather disturbs me.
The suggestion seems to be that the Chinese were ready to let Grey go
quietly after Hsueh p'ing's release but changed their line to a demand
for the newsworkers as a result of certain events in Hong Kong, namely
my press conference, the meetin8 with you and Jamca Murray and the
meeting with NCNA. I should like to let you have some comment on this in
order to nail what might develop into an unfortunate myth. I am writing
in similar terms to James Kurray.

2.

*

I should certainly be very concerned at the thought that any remarks of
mine in Hong Kong, even at a conference the general outlines of which
had been earlier agreed with the Foreign Office and with the Governor,
might have injured Grey'à chances. However, a fair examination of the
evidence suggests that this theory will not hold and that the press
conference almost certainly did not have a decisive effect one way or
another,

(a) I think it inherently improbable that the Chinese in pique

over some remarks at a press conference would make such a major change
of line as that suggested i.e. a shift from readiness to free Grey
without any price to a demand for the release of 13 men.

(b) The press conference was on the evening of 30 October.

The telephone remiest from NCNA for a meeting to discusa another round
of speciel visits was on the morning of " 1 November. The request for
special visita was a concerted oneration involving action in Peking and
Hong Kong. It seems to me almost impossible for the Chinese to have
decided on and concerted such a change within the space of 24 hours.

(c) There is, in any event, no need to postulate this since there

was another sufficient reason for the approach by Peking and NOWA at
that time, namely the need to blur the effect of the forthcoming release
of Hsueh P'ing and emphasize the link between Grey and newsworkers still
in prison. The timing of the annroach seems to have been dictated by
that and I should imagine it was worked out some considerable time
beforehand.

+

(a) The main lines of Chinese policy seem to have been consistent

throughout. The link with newsworkers in prison dates back to April.
Surgestions by the Chinese vir covert channels that Grey might be
exchanged for newaworkers occurred both before (8.6. on 2 September) and
after the resa corference. A.F. Waddocks, Req.,

Hont Kong,

79 TOOPSEEBRET

+

+

+

-

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PERSONAL

I

+

(e) Encouraging Chinese statements on the theme that the release of Grey
would not affect the struggle in Hong Kong also preceded and followed
the nrega conference. November (paragraph-15 of the paper on Grey.)

3.

e.g. 21

The press conference and subsequent publicity certainly nettled and
embarrassed the Chinese, "hat surprised and upset them more was the
degree of publicity over the November visit to Gre", which contrasted
with the relatively, little publicity the subject had received in April.
At the same time, as. I have suggested elsewhere, they were probably
bewildered by our blowing hot and cold over the release of prisoners.
Our first offer on this subject related only to Hauch but was made at a
time when Hsueh was already virtually free. I think they; read it as an
indication from our side that prisoners were negotiable. They took some
time to come back with their suggestion, but when they did so in
November and gave their counter-offer of an exchange for newsworkers, we
surprised them by saying that early release was out of the question.
Publicity was also blowing up about this time.

1

4.

This is the best re-construction of events I can offer. It must all be a
matter of speculation. But the theory that all was going swimmingly unt
the press conference does not bear

examination.

Yours

мась

лоз

(Percy Cradock)

:

TOP

No.

CHET

78.5 Date 154669

KONG

+

COVERNMENT

ECR

MONG

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SECRET

+

3.45pm

Secretary of Stati

Lord Shepherd wishes to talk to you for

for 10-15

minutes about Hong Kong.

The subject is set out in the attached submission

KOB 2/2

27/

4435

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Если

Mpa 24/3 (401 will the befored d. aft.

STS 1

прял

the

و لمسها سلام

Sir J. Johnston

Johnston

Mr. Godden

Private Secretary

less cantneed that am

Lecce

fuerent

Mey will than the sealane of very.

lad I shall have an

Hitem, & lakken,

Прий

of lakken, this gyfer will.

Fm.day 20th

MR. ANTHONY GREY OF REUTERS

By du

314

4

PROBLEM

Flag A

Flag B

(307)

In his letter of 17 February to the Secretary of State,

Mr. Long, the General Manager of Reuters, requests that the

Chinese newspaper workers imprisoned in Hong Kong should be

released in order to secure Mr. Grey's freedom. In his

311 letter of 24 February he refers to a recent newspaper report

that the Chinese intend to bargain with us about accommodation

for our respective missions in London and Peking.

Mr. Long

is due to go abroad on 2 March, returning on 29 March.

RECOMMENDATION

RECEIV

NARCHIV

Flag C

.31

b)

2.

I recommend that:-

at

The Secretary of State should offer to see Mr. Long

when the latter returns from his forthcoming trip.

I should be authorised to inform Mr. Long when I see

him on 28 February in general terms of the progress of

the present exchanges with the Chinese through covert

channels in Hong Kong.

c)

An interim reply be sent to Mr. Long on the lines of

the attached draft.

BACKGROUND

3. In essence Er. Long's proposals differ only slightly

from those made in his letter to the Secretary of State of

/ 23 July, 1968.

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Flage

D & E

Flexis (102

Flag F

23 July, 1968.

(22) 0 /2 13/13

On that occasion he seemed to advocate a

somewhat broader amnesty for prisoners in Hong Kong. On

the other hand, the tone of the present letter is decidedly

more impatient. The difficulties raised by proposals of

this kind were dealt with in the Secretary of State's letters

to Mr. Long of 26 July and 28 August. In addition I saw

Mr. Long on 17 October, 1968, and went in some detail through

the moves which had been made in Hong Kong to try to discover

Chinese intentions towards Mr. Grey. On 12 November the

Secretary of State discussed the problem with Mr. Long.

Subsequently Far Eastern Department have maintained close

contact with Er. Long and his colleagues at Reuters on the

developments outlined in his present letter.

4 I have not taken Mr. Long fully into my confidence

about the latest covert probe in Hong Kong of Chinese

intentions, although I have indicated to Mr. Chipp, the

Editor of Reuters, in general terms that we are exploring

the matter once again on the lines of Mr. George Brown's

letter to Ch'en Yi in 1967. (On that occasion the Chinese

were told that if they gave an assurance that they would

agree to allow all British subjects in China, including

Mr. Grey, who wished to leave, to do so, Mr. Brown might be

able to arrange the departure from Hong Kong of the Chinese

newspaper men and news agency personnel in prison there.)

I am, however, myself seeing Mr. Long on 28 February as a

result of an arrangement made a fortnight ago before my

departure on leave and had in any case intended to seek

/ authority

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2.

-

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Flags

G & H

340 341

authority to bring him into the picture about the latest

covert exchanges in Hong Kong.

5. Meanwhile this latest probe of Chinese intentions has

been carried forward in two further meetings between

The

Mr. Cater, the representative of the Hong Kong Government,

and his contact on 21 and 22 February (Hong Kong telegrams

Nos. 184 and 185 of 25 February). The salient feature is

an alleged message from Chou En-lai to the effect that while

the release of the newsworkers might be a big price for the

Hong Kong Government to pay it was a small price for the

improved Sino-British relations which would follow.

Governor detects in the latest round of exchanges a new note

of urgency on the Chinese side which, however, he thinks may

be purely tactical. He considers that our only course in

the next few weeks is to hope that some progress can be made

on the basis of our January proposals (i.e. the return of

the news men to China). I think this is right; but I am

submitting separately with detailed argument.

ARGUMENT

6. It remains very important that we should continue to

carry Reuters with us. We have had a number of indications

recently that Mr. Long is not entirely happy about the way

we are handling the matter. In particular Mr. Long has

been strongly critical in private of our refusal to release

the newsworkers in Hong Kong. This was confirmed by a

Flag I report from Mr. Wilford in our Embassy in Washington of a

conversation which he had with Mr. Long recently.

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-

/7.

7. There

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7. There are two principal aspects in which Mr. Long's

analysis of the problem is superficial:-

a)

b)

8.

He skates very lightly over the risks for the longterm

in Hong Kong of releasing the newsworkers in Hong Kong,

referring only to the possibility that it would be seen

as "an act of weakness and might encourage the enemies

of British rule to foment further disorders". He omits

any reference to the effect it would have on the future

value of prison sentences as a deterrent or the

encouragement that it might give the Chinese towards

further hostage-taking in future.

He proceeds on the assumption that the release of the

11 newsworkers would certainly result in the release of

Mr. Grey.

I personally believe this to be the case;

but the Governor of Hong Kong would certainly not agree

that this is a foregone conclusion.

I would be reluctant, however, to become involved in

argument with Reuters on these points

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