beller that in the restriction of Mr. Grey they are holding

a card which they can use to advantage against us in Hong

Kong. In brutal terms, we should aim to give them the

impression that we had decided to write off Mr. Grey, while

at the same time periodically manipulating public comment

so as to embarrass the Chinese over his continued restriction.

This might produce a rire Chinese proposal which we could

unen consider from a position of greater strength: and would

almost certainly ensure at least that he would be released in

September at the end of the Hong Kong sentences.

Humanitarian considerations make it necessary to consider

a derogation from this "ideal" policy. But the derogation

contemplated nas grave drawbacks. It is difficult to believe

that the Chinese will change their ground on deportation to

Chine, however it is dressed up. And I find the idea of

letting the convicted prisoners spend the rest or their

sentences in China, undergoing re-indoctrination before a

triumphal guaranteed return to the Colony in September (which

is where we seem likely to finish up) little improvement on

releasing them in Hong Kong. Even though the Governor says

/he

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he would go along with this as a last resort, it seems to

me that this risks Peking drawing the conclusion that the

Grey restriction nas been a successful operation which has

kept us on the move over detainees and emergency regulations

and which has finally prized the "newsworkers" out of our

clutches: and we could expect - face the like again.

It would be difficult to abandon the probe at this

point. But the course proposed goes less var than

Mr. Cradock thinks would be necessary to be sure of

Mr. Grey's release (his telegram No.30 at flag F): and too

far, in my view, to prevent a Chinese conclusion that they

have made a successful use of a political hostage. I believe

therefore if we must pursue the probe that we ought to

consider confining the next exchange to the much more

defensible proposition that we would release to China (to

remain there) those of the "newsworkers" who wished to be

so repatriated, provided Grey is released.

-

You will no doubt wish to discuss, in view of the

variant opinions expressed on this most difficult subject.

BB Lakewolin

(J.B. JOHNSTON)

25.1.69.

Copy to:

Sir A. Galsworthy

Mr. Moreton

Kr. J. Kurray

kr. Carter

but Turjadi

Very d

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Mr. Anthony Grey

RECEIVED IN ARCHIVES No.31

29 JAN 1969

FECI3/1.

339

pakozall

Mr. Moreton rightly points to the considerable risks involved in the
course now proposed. This is essentially a matter of personal judgment,
not to say guesswork. My own judgment coincides with that

expressed by the Governor in his letter to me of January 7th, at Flag C,
namely that our best way of helping Mr. Grey is to continue to
demonstrate firmly to the Chinese that their attempts to use him as a
lever for political ends will bring them no dividends, combined with a
judicious stimulation/publicity from time to time.

2. I take this view also because I too feel considerable doubt whether
the line proposed in the draft telegram below the submission will in
fact succeed. I would not challenge the view that if we could release in
Hong Kong all 11 of the remaining news workers serving prison sentences
in Hong Kong, the probability is that the Chinese would respond by
releasing Mr. Grey. But I am quite clear in my mind that we could not
pay this price, i.e. release in Hong Kong: the risks to our internal
position there would be too serious and far reaching. The line advocated
in paragraph 5 of the draft telegram is therefore the furthest we can
go, save for the one possible additional concession we would still keep
up our sleeves, namely that we might have to accept back into Hong Kong
after their sentence had run out the people whom we would have released
to China.

3. I believe therefore that this move is unlikely to succeed, and that
we shall then be driven back on the stance which the Governor

feels to be the best.

4. However, I recognise that there are arguments for making now the
attempt advocated in the draft telegram. The advantages of doing so

are

(a) if it should succeed we should have got out Mr. Grey, (b) if it
fails, we shall at least have satisfied ourselves that

we have explored this one avenue which does seem to offer some faint
hope; the price we shall have paid will not be too damaging to our
position in Hong Kong; and it will no doubt be helpful in fending off
further pressure over the next weeks if we are able to say that we have
explored very confidentially the Chinese position and are satisfied that
there is no basis

on which we could do a deal.

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The

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The main disadvantage, as I see it, is that if we do then have to fall
back on the stance advocated by the Governor, as I personally think we
shall, we will then take rather longer to convince the Chinese that they
cannot use Mr. Grey to get further concessions out of us.

5. In short, my own view is that if we feel we must make a further
effort now, the line advocated in the draft telegram is the right one.
But I do not myself believe that it will get Mr. Grey out; I think it
may actually delay his release; and I believe that the better hope lies
in taking the firm line advocated by the Governor in

his letter.

Copies to

-

Mr. J. Murray

Mr. J.O. Moreton Mr. W.S. Carter

ANG.

(A.N. Galsworthy) 21st January, 1969

2571-

170

Lour Shepherd

Sünd. Galsworthy

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r. freton

Theater

que mi

Mr. Anthony Grey

RECEIVED IN

ARCHIVES No.31

29 JAN 1969

+

338

pako 24/1

PROBLEM

On 28 December the New China News Agency published a report,

datelined Peking, openly linking Mr. Grey with the Communist news

workers (then thirteen, now eleven in number) serving prison

sentences in Hong Kong. The report said that "Since the Hong Kong

British authorities continue to keep the thirteen patriotic Chinese

journalists in jail, the Chinese Government is fully justified in

continuing to restrict Grey's freedom of movement"

2. In the wake of the NCNA report the Chinese have resumed

unofficial contacts on the subject of Mr. Grey through covert

channels in Hong Kong. During the first week of January the

contact who has been used in the past alleged to Mr. Cater, a

Hong Kong official, that the Chinese expected a reply to the NCNA

report which he called "the proposed swap for Grey". The contact

stated that it was desirable that some kind of counter-offer should

be made to Peking at this stage. He reacted enthusiastically to

Kr. Cater's personal speculation that it might be possible to

rele.se some of the news workers to China until the expiry of

their sentences and said he thought it likely that Peking would

accept such a compromise. The Governor of Hong Kong has indicated

that he is prepared to consider a solution involving deportation

of the news workers, subject to certain conditions.

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FLAG A

FLAG B

RECOMMENDATION

3. I recommend that we authorise the Governor of Hong Kong to

proceed on the general lines proposed in his telegrams No. 28 of

10 January and No. 44 of 16 January, with certain modifications.

A draft telegram is attached. Hong Kong Department concur.

ARGUMENT

The NCNA Statement of 28 December

4. The Chargé d'Affaires in Peking has argued that the NONA

statement names an official price for the release of Mr. Grey and

therefore creates a new situation (Peking telegram No. 3 of

2 January). In my commentary of 9 January on Mr. Cradock's

telegram (also attached) I took the view that the statement was in

large part a defensive response by the Chinese to our earlier

publicity campaign and that the Chinese had not in fact named a

specific price for Grey. The Chinese have in my view been very

careful in all their recent utterances on Mr. Grey to avoid

committing themselves to the statement that were the eleven

remaining news workers released Mr. Grey himself would automatically

be released; or to the position that he will necessarily be held

until they are all out. The price remains therefore to some

extent negotiable.

Release of the News Workers in Hong Kong

5. of the eleven news workers remaining in prison in Hong Kong

ten are due to be released (assuming they receive full remission)

in September 1969 and the remaining one in February 1971. In his

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FLAG C

telegram No. 3 of 2 January, despatched before the most recent

approuch by our contact in Hong Kong, Mr. Cradock urged the early

release of all eleven. The Governor of Hong Kong has throughout

opposed the premature release of convicted prisoners in Hong Kong

And we share the Governor's view that such a move would damage

public confidence in Hong Kong; be interpreted by the Communists

as a sign that we lacked firmness; and by providing a precedent

of willingness to disregard the Courts for an immediate political

purpose impair the future credibility of the sanction of

imprisonment. While it is the opinion of Far Eastern Department

that the release at this juncture of the remaining eleven convicted

news workers in Hong Kong would in all probability secure the

release of Kr. Grey this remains an opinion and is something

which cannot be proved; and even if it could be proved we remain

opposed to the premature release in the Colony of these prisoners

for the reasons given above. Apart from these negative considera-

tions, it is only fair to add that the Governor has in addition

argued persuasively (his letter of 7 January to Sir Arthur

Galsworthy enclosing a thoughtful study of the Grey case) that

the best way of helping Mr. Grey is to continue to demonstrate

firmly to the Chinese that their attempt to use him as a lever for

political ends will bring no dividende.

Consequences of Mr. Grey's Continued Detention

6. It is of course possible that, if we stood firm, the Chinese,

calculating that not only did they secure no tangible benefit by

continuing to hold Mr. Grey but also that the treatment of him

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continued to damage their reputation in third countries, might

release him. But I see no immediate prospect of this. The

earliest occasion on which we would have good reason to expect

further progress towards his release would be in September 1969

when ten of the remaining eleven news workers will have completed

their sentences. (We could then reasonably expect the Governor

to commute the sentence of the eleventh.) In the meantime, we

may be brought by humanitarian considerations and by pressure of

public opinion in this country which is in its turn directly

related to reports of Er. Grey's health, to considering again

the unwelcome step of releasing the convicted prisoners in Rong

Kong. If, therefore, there is any third way it merits careful

consideration. such a way has now perhaps been provided by the

covert channel.

Release of the News Workers to China

7. During the series of meetings with Mr. Cater at the

beginning of January our contact indicated the following:

(a) The Chinese considered that they had brought their

price for Grey into the open and expected a reaction.

(b) They believed that it was the British side who were

dragging their feet.

(c) The Chinese were embarrassed over Grey and anxious

for a settlement; they were aware of British

difficulties but would still like to see H.M.G.

release the news workers (i.e. release in Hong Kong);

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FLAG D

8.

this might be done in batches, the release of all

finally securing Grey's release.

(d) The impossibility of such a course being explained to

the contact, he reacted immediately and with enthusiasm

to the idea of a compromise involving the release of

some of the news workers to China until the expiry of

their sentences.

(e) The contact thought that the Hong Kong Government should

make an initial proposal, that Peking would accept a

compromise and that H.M.G. should negotiate with

care, making a low offer at the outset (Hong Kong

telegram No. 27 of 10 January).

Reviewing these overtures the Governor has commented that

even if the Chinese are still not committing themselves to a firm

offer their suggestions are becoming more specific; and that if

the eleven news workers were released this would probably secure

the release of Mr. Grey. The Governor remains opposed (rightly

in our view) to the premature release of the news workers in Hong

Kong itself. He would like any confrontation prisoners deported

from Hong Kong to go for good and notes the discouraging earlier

refusals by the Chinese to accept such prisoners into China.

However, the Governor points out that if Mr. Grey is in fact of

sufficient embarrassment the Chinese may have come to the point

of reconsidering their earlier attitude. The Governor says he

would therefore be prepared to allow an indication to be given

to the Chinese that we might consider releasing a small number

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FLAG E

FLAG F

of the news workers subject to two conditions:

(a) That they specifically request repatriation, and

(b) that they leave the Colony permanently and willingly.

The Governor proposes to use the covert channel to indicate

an interest in a solution on these lines, while avoiding at this

stage any pore specific proposal than that relayed, we hope

authoritatively, by the contact. (Hong Kong telegram No. 28.)

9. The Chargé d'Affaires in Peking who holds strongly to the

view that the Chinese are anxious to settle the Grey question

and believes that they have as good as named a clear price, is

not over-sanguine about the possibility of securing Mr. Grey's

release by the deportation of the eleven news workers. He has

stressed that settlement through deportation is a second best for

the Chinese compared with the release of the eleven prisoners in

Hong Kong. He points to the discouraging precedents and the

possibility that negotiations through this channel will be

unnecessarily protracted. He makes three recommendations of

substance:

(a) The news workers should be released in Hong Kong (prior

to their departure for China) rather than at the border,.

(b) They should be allowed to return to Hong Kong on expiry

of sentence.

(c) We should be prepared to release all eleven, though

release in batches might be possible.

(Peking telegram No. 30 of 14 January).

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FLAG G

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The Governor has now telegraphed further to meet

(Hong Kong telegram No. 44). He

10.

Mr. Cradock's objections.

points out once again the serious objections to releasing

convicted prisoners in Hong Kong itself and of his consistency

in this view. He points out that permanent deportation is

preferable to the softer sanction of merely requiring the prisoners to
leave Hong Kong for the duration of their sentences over the border, and
provides a better justification locally for his use of the Royal
Prorogative. But he adde perhaps somewhat surprisingly that he would in
the final instance reluctantly

accept the latter.

11.

*

Far Eastern Department are not sanguine about the chances

of success. The Governor remarked during the course of the

1967 "confrontation" that much the best way of solving the

problem of "confrontation" prisoners would have been their deportation.
Regrettably a test case early in 1968 indicated

that the Chinese were not prepared to allow the Hong Kong

authorities to put such persons across the border. In Peking they told
the Chargé d'Affaires officially that such a solution

was ruled out, arguing that since Hong Kong is part of China the

inhabitants of the Colony cannot be deported from one part of

China to another. If the Chinese attitude on this question

has now changed so much the better; but the evidence is as yet

slender. A second difficulty lies in the likely attitude of

It seems at least the imprisoned news workers themselves.

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possible that faced with the reality of China as opposed to the

myth of the Cultural Revolution a number of the news workers might

decline to go there. This would clearly make any solution

difficult to achieve:

we could not force the news workers across

the border against their will; and the Chinese would be most

anxious to avoid bringing things to the point of a public admission

that their news workers did not wish to return to the motherland.

A final difficulty is that of securing any guarantee from the newe

workers that once out of Hong Kong they would stay out.

It is

likely that the majority could prove a right of residence in the

Colony and we should perhaps be on difficult legal ground in

continuing to exclude them against their will after the expiry

of their sentences. In the solution of all these difficulties

we should need the goodwill of the Chinese authorities. This wil1

be forthcoming only if (as remains to be proved) they are genuinely

anxious to end the Grey affair. Nevertheless, since the Governor

and Mr. Cradock are both agreed that an attempt to solve the

case through "deportation" is worth a try, I think we should go

ahead.

Clearly the responsibility for conducting the operation

must lie with the Governor of Hong Kong; and we believe that he

has met Mr. Craddock's points of detail.

Tactica

12. My views on tactics (which differ from what the Governor

proposes in three minor respects set out in (b) below) are these:

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(a) The Governor should instruct Hr. Cater to indicate

to the Chinese through the contact our interest in a

solution based on deportation of the news workers

(described for the purposes of the exercise as "release

to China!).

(b) To avoid giving the potentially disastrous impression

that we are softening under pressure we should indicate

at the outset rather more precisely than the Governor at

present suggests, the limits within which we are

prepared to discuss the Grey case, i.e.

(1) We should make it clear at the start that release

in Hong Kong itself is ruled out for all or any

of the convicted news workers. We should wish thus

to discourage any Chinese attempt to obtain a

H

"mix"

for instance six deportations and five

releases in Hong Kong.

(ii) We should state, also at the start, that we

have no objection to the departure of all eleven

newa workers to China should they give an under-

taking (in writing if possible) to go willingly.

(iii) We should try to avoid arriving at what may be

the crux of the negotiations the issue of

-

subsequent return to Hong Kong at the outset.

Perhaps the best tactics would be for the

Governor to avoid any initial reference to this

8

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possibility; if the Chinese return with a demand

for clarification he could then seek to avoid

commitment (for instance by undertaking to consider

any request for deported news workers to return

to Hong Kong if and when they make such a request);

only in the last resort should the Governor

concede a prior guarantee that they may return

to Hong Kong on the expiry of their sentences,

Our differences with the Governor are however on

questions of tactics. We share very closely his

views on the substance of what we can or cannot

concede.

Other British Subjects

13. In the event that we do secure the release of Mr. Grey by

the means outlined above we shall be confronted with another very

real problem. While we shall no doubt gain some credit for

securing the release of Mr. Grey we are bound at the same time to

be asked why it was necessary to make concessions in the ratio of

eleven to one. We shall be told that we should have attempted to

include other British subjects in any bargain.

This is a very

real difficulty but it is one we shall have to try and deal with

by a statement of the facts. Mr. Grey was detained in reprisal

for action against the Communist press and its employees. Even

though the persons may have changed since June 1967 it is the

category of news workers for which Mr. Grey continues to be held in

reprisal. There has been no official or semi-official attempt by

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the Chinese to link him with prisoners in Hong Kong outside this

field. The Chinese took action against Kr. Grey because they are

extremely sensitive about the continued functioning of their

propaganda machine, their biggest weapon in territories outside

China. They may also be presumed to be anxious to demonstrate

to their correspondents generally that they will in all

circumstances have the full backing of the Chinese Government.

Without demonstrations of this kind they would find it hard to

keep up the morale of their press workers who are often

particularly exposed to hostile attentions particularly in the

countries of South East Asia. By contrast there is little to

indicate that the remaining British subjects are being held

similarly as hostages. They, like the majority of other

foreigners in trouble in China are held for a variety of

reasons, involving alleged misdemeanours on their part. Their

cases will only be solved slowly and with difficulty, and there

is little we can in fact do to help them. We can only hope

that if we secure the release of Mr. Grey this will remove a

major stumbling block in improving Sino-British relations and

somewhat facilitate the solution of the other cases in their

tum. I should wish to recommend most strongly that in undertaking

negotiations for the release of Mr. Grey we resist the

temptation of trying to make the exercise a package deal

involving the cases of other British subjects. I am sure this

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would not help these British subjects - and would immediately

bring the effort for Mr. Grey to a standstill.

Copy to:

Private Secretary Mr. Godden

Sir A. Galsworthy Sir J. Johnston Mr. Carter

од

(James Kurray)

17 January, 1969

2.

(i)

(ii)

There are considerable risks in the course proposed:-

That this degree of "give" in our position will be interpreted by the
Chinese as weakness and lead them to press for more.

That even if the Chinese agree to release Grey on these terms they may
regard the price we have paid as justifying the taking of further
hostages in the future.

(iii) That once we have made the offer we shall not get Grey

for less and that we may, if negotiations break down, in fact be
delaying his release.

i.e. one for

(iv) That if the offer succeeds, Ministers will be under

strong criticism for an "unequal" bargain

eleven.

-

Nevertheless, in view of the arguments in the submission and in
particular since the Governor is willing to go so far, on balance I
support the action recommended.

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عليمية

(J.". Moreton) 17 January 1969.

NOTHING TO BE WRITTEN IN THIS MARGIN

I

* Date and time (G.M.T.) telegram should

reach addressco(s) -

Registry No.

DEPARTMENT

Far Eastern

F

SECURITY CLASSIFICATION

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Secret

Confidential

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Unclassified

[First Draft]

PRIORITY MARKINGS

Flash Immediate Priority

Aoutine

(Date)

Despatched

PRIVACY MARKING

In Confidence

En Clair.

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Draft Telegram to:-

HƯNG KUNG

No.

(Date)

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