H
pher/Cat A
PRIORITY
elno 3
SECRET
SECRET
PEKING TO
2 January 1969
FOREIGN AND COMMONWEALTH OFFICE
120/€
Clue /0.K. M
Addressed to FCO telegram No. 3 of 2 January. for information to Hong Kong.
My telegram No. 1138 of 1968:
This statement, which you will
Grey.
Repeated
now have seen in full in
· NONA. is of considerable importance. It is the first issued by the Chinese Government since 21 July 1967, the day Grey was detained. It states price for him officially and publicly the release of the remaining flews workers and makes it clear that the Chinese will not budge from this position ("The British Government will absolutely achieve nothing in its effort to force the Chinese Government to change its just stand"),
2.
11
It may be argued that the Chinese statement is still not crystal clear and that they have not for instance said in so many words relcuse the fews workers and we shall release Grey'. But in the context of an official public statement wished to avoid too blatant an offer, and given the Chinese habits of indirection, this was not to be expected, By local standards message is in very large letters. Nor, I am afraid, is it possible to explain away the statement as merely a defensive announcement, which, while saying Chinese are fully justified in holding on to Grey would not prevent them releasing him tomorrow as a magnaminous gesture. If the Chinese wished to retain their freedom of manoeuvre, why issue an official statement, in particular why specify the 13 News workers? The essential point is that they have now gone publicly on record on the price for Grey. They no doubt feel they have a case of sorts and can face any subsequent publicity on this basis. I fear we shall not get Grey for less than this price. For the Chinese to release him for less would now be a public climb-down.
3.
The statement, I submit, creates a new situation. Hitherto it has been possible to argue with some degree of persuasion that there was no price for Grey and that if we held on we might obtain his release without having to make any concession. This argument is no longer plausible and the line set out in your telegram 1002 requires review.
4.
•
There are now broadly three courses open:-
(a) to release the News workers quickly, whether on their own or with other prisoners as part of a more general act of clemency;
(b) to hold on in the hope that the Chinese will change their minds and then if after a specified period, say six months, they have not, act as in (a);
(c) to sit it out waiting for the News workers to be released in normal way between now and February 1971.
SECRET
/4.[sic].
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