TNAG-0027-FCO40-63-Relations-with-China-1968 — Page 30

Cypher/Cat A

PRIORITY

PEKING

ΤΟ

CONFIDENTIAL

FOREIGN OFFICE

23 December 1967

217

Telno 569

CONFIDENTIAL

Addressed to Foreign Office telegram No. 369 of 23 December, Repeated for information to Hong Kong.

212) My telegram No. 558: Reuters.

Since sending my telegram under reference we have taken another look at Grey's case and I have come to the conclusion that the time has come for us to give serious consideration to an early approach to the Chinese offering an exchange of Hseuh Ping, and possibly other N.C.N.A. staff in detention in Hong Kong, against Grey.

2.

It is clear from terms of Chinese news release in July when Grey was put under house arrest that he is being held against Hseuh Ping and we can expect no substantial progress until we make offer of an exchange. It is true this was included in your message to Ch'en Yi in early September but context was wide one of general Anglo-Chinese relations; moreover, the situation was much more tense both here and in Hong Kong than now. In the currently improved atmosphere if we were to put forward this specific proposal on its own it might produce results for Grey. The Chinese readiness in recent border talks to consider the return of Knight suggests they may be responsive to this kind of swap. Some such deal might have resulted eventually from Chipp's contacts with the Bank of China had these not proved abortive. Now that actions against Ta Kung Pao and wen Hui Pao have been shelved it may be possible to take up the threads again. Certainly we would lose nothing by trying and we might learn something of the Chinese attitude on the question of deportation, which could be relevant to our own case.

AR

5. There may well be difficulties with the Chinese over attempts to deport Hseuh Ping and I appreciate there can be no question of setting him at liberty in Hong Kong. But this might be overcome by presenting the deal as one of mutual deportation. Grey would have to leave China at once and we would have to persuade Reuters not to send replacement for some time.

we should also have to make up our minds on whom, apart from Hseuh, we would be prepared to hand over. The Chinese may well

4.

ask for more than one man.

5. If this proposal is approved I would make an oral approach here, probably to the west European Department, with the initial offer of Hseuh. If we decide to make such an approach it would probably be better to withhold the publicity suggested in my telegram No.358.

1 realise this proposal will pose considerable problems for Hong Kong but should be grateful if it could be examined urgently

6.

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2 DEC 1967

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