TNAG-0033-FCO40-69-Relations-with-China-1968 — Page 108

H.K... Dept. .Dept.

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TO HONG KONG

13 SEPTEMBER 1963 (F)

824

CYPHER/CAT A

IMMEDIATE COMMONWEALTH OFFICE

TELEGRAM NUMBER 1452

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ADDRESSED TO HONG KONG TELEGRAM NUMBER 1452 OF 13 SEPTEMBER

REPEATED FOR INFORMATION TO PEKING.

YOUR TELEGRAM NUMBER 1059: GREY.

дох

WHILE THE INDICATIONS WHICH YOU REPORT ARE INTERESTING WE ARE RATHER DOUBTFUL ABOUT ACCEPTING THEM AS SOLID EVIDENCE OF CHINESE INTENTIONS. AS AGAINST THEM WE HAVE SHEN PIN'S REMARK TO MR FOLEY THAT QUOTE GREY'S FREEDOM HAD BEEN LIMITED BECAUSE OF THE UNREASON- ABLE ARRESTS OF N.C.N.A. JOURNALISTS AND OTHER PATRIOTIC CORRESPOND- ENTS IN HONG KONG UNQUOTE (F.O. TELEGRAM NUMBER 825 OF 6 SEPTEMBER TO PEKING). WE CONTINUE TO THINK THEREFORE THAT THE MINIMUM 805

PRICE THE CHINESE WILL EXACT FOR GREY WILL BE BOTH HSUEH AND LO. BUT WE ACCEPT THAT THIS CAN ONLY BE A MATTER OF OPINION.

2. ON PRESENT FORM THE INTERVAL BETWEEN THE FIRST AND SECOND MEETING MAY BE CONSIDERABLE. IN OUR VIEW THEREFORE THE LIKELY CONSEQ- UENCES OF THE PROCEDURE YOU NOW PROPOSE WOUL BE ADDITIONAL DELAY IN ASCERTAINING THE CHINESE PRICE FOR GREY. NOT MERELY WOULD THIS DELAY BE UNFORTUNATE FOR THE HAPLESS GREY. BUT THE MATTER MAY NOT HAVE BEEN RESOLVED BY THE TIME HSUEN IS DUE FOR RELEASE UNDER EXISTING REGULATIONS. WE SHOULD THUS HAVE LOST SUCH BARGAINING ADVANTAGE AS WE NOW POSSESS FROM BEING ABLE TO GIVE THE CHINESE THE COMPARATIVELY HARMLESS SATISFACTION OF THE PREMATURE RELEASE OF HSUEH. IF WE LEAVE OUT OF ACCOUNT CRADOCK'S ARGUMENT - IN WHICH INCIDENTALLY I STILL SEE FORCE - ABOUT THE RISKS OF THE QUOTE INSTALMENT UNQUOTE APPROACH (PARAGRAPH 6 OF PEKING TELEGRAM NUMBER

85) 765 OF 21 AUGUST) IT WOULD SEEM TO BE A MATTER OF JUDGING HOW SOON

CARTER CAN HOPE TO HAVE A REACTION TO HIS INITIAL APPROACH: AND THIS OF COURSE CAN BEST BE DONE BY YOU. IF YOUR ASSESSMENT IS THAT

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goy

/THERE

HWA