TNAG-0031-FCO40-67-Relations-with-China-1968 — Page 212

CONFIDENTIAL

We must therefore face the fact that we will not get access

again to Mr. Grey until a further round of special visits

is permitted in Hong Kong. The Governor of Hong Kong has

argued that a further round of such visits would be

regrettable in general and particularly so in the near

future; it would tend to consolidate N.C.N.A.'s special

position in Hong Kong and give them a propaganda advantage;

it might encourage the Chinese to make further use of Mr.

Grey as a bargaining counter; and there might be an adverse

effect on public opinion in the Colony. The Governor adds

that the Chinese might well raise the price of a further visit.

We see the force of these arguments and agree that we should

There are, not be seen to be running after the N.C.N.A.

however, two counter arguments which must be borne in mind:-

(a) We have already conceded the point of principle by

permitting the first visit. There may be some

advantage in following up the tacit understanding

that appears to have been reached on the matter of

visita rather than allowing the understanding to lapse

and then finding ourselves in a position where we have

to revive it with a further round of elaborate nego-

tiations with N.C.N.A.

(b) The Chinese may raise the price of a further visit

whenever we propose it; but they would be particularly

prone to do so after a gap in which our inability to

secure further access to Mr. Grey other than by

accepting Chinese terms had again been demonstrated.

CONFIDENTIAL

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