TNAG-0113-FCO40-149-Detainees-and-prisoners-following-19671968-disturbances-1969 — Page 172

SECRET

mainland.

We have modified our original proposal to the

extent of offering release in Macao. Mr. Cater, however,

has kept insisting that release in Hong Kong itself is

out of the question, in the hope that if we could convince

the Chinese of our determination on this point, they might

retreat from their intransigence. But to no avail; and

I think that we must now conclude that our offer has been

rejected.

5.

Aspects of the covert discussions are, however,

relevant to our future decisions. In a message supposed

to emanate from Chou En-lai the Chinese offered, in return

for a settlement of the Grey case, unspecified improvements

in Sino-British relations extending both to other British

subjects in China and to trade. Balancing the benefits,

another message contained a veiled threat: if it was our

intention to release the ten of the news workers in due

course in September and then try to trade Mr. Grey for the

eleventh, these tactics would not work.

ARGUMENT

6.

If we conclude that our offer has been rejected, we

The eleventh,

must now proceed on the basis that the Chinese intend to

hold on to Mr. Grey until all eleven news workers have

been released. Ten of them are due for release with

remission next September.

(sentenced to five years imprisonment in September 1967)

is not due out with full remission until February 1971.

But the Governor has now agreed to set in motion an exercise

/designed

- 3-

BROPET

→