TNAG-0078-FCO40-114-Action-against-Communist-press-1967 — Page 49

Cypher/Cat A

Copson

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on HWB 3/2 Hiv 107

HONG KONG TO COMMONWEALTH OFFICE (D.T.D.)

Telno. 1903

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LAST

REF.

HWD / 201

23 December 1967

f

121

(201

Addressed to Commonwealth Office telegram No. 1903 of 23 December, Repeated for information to Peking, Singapore and Washington.

My telegram No. 1851: Communist Press.

HWBB3/2

It now transpires that we were misled in believing that McGregor had received an approach from the Bank of China as reported in 2(b) of our telegram under reference. In fact, after the adjournment of the Assessment of Damages in his case, he himself spoke to a friend whom he know to have Communist contacts and asked whether anything could be done to arrange a settlement. The detailed points made in paragraph 2(b) seem almost certainly to have emanated from this friend (whom we regard as highly unreliable), perhaps after some initial dis- cussions with an employee of a Communist controlled bank.

2. Nevertheless it now seems clear that the friend has event- ually succeeded in making contact with responsible people in Ta Kung Pao. The suggestion has been put forward that McGregor should himself and on his own visit the Ta Kung Pao offices for a meeting. The intermediary has held out hopes that the Communists might agree to the terms of a statement to be made by McGregor in court to the effect that he was withdrawing his action on the understanding that the Ta Kung Pao did not consider him to be in any way a corrupt official.

3.

There are patently risks in pursuing this matter through unreliable intermediaries (McGregor himself also being somewhat volatile). On the other hand

On the other hand, now that some contact has been made with the Communists it could have an unfortunate effect if the negotiations were peremptorily broken off from our side. McGregor has therefore been instructed that he may continue, through the intermediary, to try to arrange a meeting, but on condition:-

(a) That it should be held on neutral premises and not in a Communist building;

(b)

that he is accompanied by his solicitor or a reliable friend;

(၁)

that he refuses to discuss any matter other than the libel cases.

4. A problem relates to what McGregor should say about the other outstanding libel cases. It seems certain that the Communists will raise them; and McGregor has apparently already given some indication that he would be prepared to discuss them.

HWA14/32

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/He has been