SACRIT
11
Discussions to the
Bor mi
progrem un HK.
Hong Kong, although the offer has been made with them twice
since the beginning of the year. This is not surprising
as Mr. Grey represents a valuable card and we may not find
cut precisely what the Chinese want in return for him until
they have probed our intentions a good deal more. On the
other hand there now seems a reasonable chance that we will
be granted access following our agreement to special visits
to N.C.N.A. and "other patriotic journalista" imprisoned in
Hong Kong, on the clear understanding of reciprocal visits to
Mr. Grey.
(b) Mr. Watt
Mr. Watt's offence has probably been taking photographs
in breach of Chinese rogulations and attempting to anuggle
them out. His sentence to three years imprisonment came just
eftor the Kanaging Director of Vickers-Zimmer had concluded
unsuccessful talks in Peking with the Chinese authorities.
Vickers-Zimner, who are constructing a synthetic fibre plant,
have had commercial difficulties with their Chinese clients,
probably on account of bed planning errors by the Chinese
authorities and the confusion caused by the Cultural Revolution.
There is the possibility that the Chinese are using the Tatt
case in an effort to thrust on to Vickers-Zimmer formal
responsibility for delays in the contract, The Chinese state-
ment about Mr. Watt accused Vickefs-Zimmer of "fraud in
economic and technical fields". Vickers-Zimmer are writing
to the Chinese once again in reasoned terms about fulfilment
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