CONFIDENTIAL
4
Talking Points
MR. ANTHONY GREY OF REUTERS
Anthony Grey, your correspondent detained in Peking has
been very much on my mind in recent months. I know that my
officials have been keeping you in touch with what has been
going on. I have asked you to call today to underline my
personal interest and to assure you that I have been following
developments very closely. I had an opportunity to discuss
the whole matter in some detail last week with the Governor of
Hong Kong who has just come back to this country on leave.
Te have always thought that it would be impolitic to try
to negotiate the release of Mr. Grey through formal channels
with the Chinese. As you know, at an early stage we offered
the Chinese a direct exchange of Mr. Grey for Hsueh P'ing.
They showed no interest in such an arrangement and this
reinforced our impression that a negotiation could only
encourage the Chinese to name a price quite unacceptable to us
(e.g. the release of large numbers of convicted prisoners in
Hong Kong); and this might well delay rather than speed the
conclusion of this unhappy affair. However, as the Head of
Far Eastern Department has already told you in confidence, the
Governor of Hong Kong was instructed last month to conduct a
probe of Chinese intentions through covert channels. The
/ intermediary
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