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CONCLUSIONS

3. My conclusions are these.

(a) While from the point of view of the Grey case it would

suit us best if the September timing envisaged earlier

could be maintained in the Brooke case, the timing of

the latter need not be a decisive factor in the timing

of the former. Thus the Grey case of itself does not

(b)

seem to me to require us to press for delay in the

Brooke case.

Even if a bargain about Mr. Brooke is to become publicly

known by 1 July, this does not require us to try to

settle the Grey case before that date by the release of

the convicted newsworkers in Hong Kong.

Indeed it

would be both impracticable and undesirable for us to

attempt to do so.

(c) Accordingly a decision on the future handling of the

Grey case can await Lord Shepherd's return.

(a)

If thereafter the decision on the merits of the Grey case

is to let things take their course in Hong Kong until

October, developments in the Brooke case should not

prevent us from going through with this.

ARGUMENT

4.

There is much force in the case the Governor has put to

There are, however, two points with which I

Lord Shepherd.

would take issue.

(a) I do not agree that it is "by no means certain that the

earlier release of the newsworkers would expedite

Mr. Grey's release". If, on the basis of the recent

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assurances by the Chinese Chargé d'Affaires we accept

that the release of all the newsworkers by October will

secure the release of Mr. Grey, then it seems to me as

certain as anything can be in dealings with the Chinese

that the earlier release of the newsworkers would result

in the earlier release of Mr. Grey.

(b) I am firmly opposed to "cover stories" as a means of

justifying the release of the newsworkers. It was right

that an arrangement was contrived to bring Wong Chak on

to the same basis as the other ten newsworkers, and we

were able to achieve this without excessive public

embarrassment.

But if we were now to try to contrive cover

stories for the premature release of the others (and of

Wong himself), credibility would be strained and I should

have thought the Hong Kong authorities would be made to

look foolish. If therefore the eleven are to be released

prematurely it would in my view have to be on the basis of

a "flat political deal" which we would have to do our best

to present, not as giving way under pressure but as a

gesture of conciliation stemming from strength.

However, my view is that the Governor has in effect made a

powerful case for letting matters take their course in Hong Kong

until October.

5. The complicating factor is the present state of the Brooke

case. On the two arguments which Lord Shepherd advances for

deferring public knowledge of any deal over Mr. Brooke until

the Grey case has been settled, I have the following comments.

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(a) Knowledge of a bargain with the Russians over Mr. Brooke

would clearly lead to pressure from those directly

involved in the Grey case (i.e. Reuters, certain sections

of the press, and the Grey family) for a bargain with

the Chinese over Mr. Grey. But I am by no means certain

that public opinion generally would come to the conclusion

that because we had in very special circumstances made

concessions to the Russians about the Krogers we should

necessarily follow this up by caving in to the Chinese

over the convicted newaworkers. Moreover there are

important and relevant differences between the Brooke case

and the Grey case, which it should not be too difficult

to put across to the public. Mr. Brooke faces the

prospect of a new and long prison sentence;

should, on the terms the Chinese have declared to us,

be out of detention in October.

Krogers, but eleven neweworkers.

Mr. Grey

There are only two

The Krogers are in a

very special and restricted category of prisoners,

whereas the newaworkers are eleven among over 200

communists who are serving sentences in Hong Kong for

offenses arising out of the 1967 troubles.

The bending

of the law in favour of the Krogers does not involve the

same considerations of security and public confidence for

the future as would similar action in Hong Kong.

(b) The Chinese are bound to draw their own conclusions from

our willingness to bend the law in respect of the Krogers

particularly in the present sour climate of Sino-Soviet relation
and/contrast it with what has been said to them about the

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impossibility of prematurely releasing convicted

prisoners in Hong Kong.

This may well lead to further

pressure by them on us in the matter of the whole problem

of convicted prisoners in Hong Kong. We must accept

that there is some risk that they might put up their

price for Mr. Grey to include convicted prisoners other

than the newsworkers. But I personally doubt if they

will do so, in view of the firmness with which they have

established the link between Mr. Grey and the newsworkers.

On 5 May the Prime Minister commented that the prospect

of an early deal over Mr. Brooke made it desirable that we should

get the Grey case out of the way first. If knowledge of a deal

over Mr. Brooke is now to become public by 1 July I doubt if it

is practicable to try to get the Grey case out of the way

beforehand. We could of course try to persuade the Governor

that a "flat political deal" in advance with the Chinese about

Mr. Grey would be the best way of avoiding the dangers to which

Lord Shepherd has drawn attention. But I am reasonably sure

that the Governor would argue that because it had been

considered necessary to accept the Russian terms over Mr. Brooke,

this was no justification for taking what he continued to regard

as unjustifiable risks for the future of Hong Kong. Moreover

with so short a time remaining before 1 July a deal now with

the Chinese over Mr. Grey would no longer meet what may have

been some of the Prime Minister's preoccupations at the

beginning of May. Knowledge of concessions to the Chinese

over the newsworkers followed almost immediately afterwards by

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public knowledge of concessions to the Russians over the

Krogers is likely to increase rather than diminish our

problems with opinion in this country. Hence my conclusion

that it is both impracticable and undesirable to try to settle

the Grey case before 1 July.

Copies to:

Jaun

Private Secretary

Mr. Baker

Miss Deas

Sir T. Brimelow

Sir A. Galsworthy

Mr. Giffard

Mr. Carter

Wwway.

(James Murray)

11 June, 1969.

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CYPHER/CAT A

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Head of Far Eastern

COPY NO.3

enter

TO FOREIGN AND COMMONWEALTH OFFICE

IMMEDIATE HONG KONG

TELEGRAM NUMBER 466

7 JUNE 1969

SECRET

FOR SECRETARY OF STATE FROM LORD SHEPHERD.

GREY.

RECEIVED

RIC

13 JUN 1969

Ju

བཉྩེ ༽༦༠༦

Ker 1010 $ f. 19.6.

KEL 134/1

Paylo

bas

I HAVE DISCUSSED WITH GOVERNOR ON BASIS OF YOUR INSTRUCTIONS. HIS

INITIAL REACTIONS WERE AS FOLLOWS.

2. HE HAD BEEN TRYING FOR LAST 18 MONTHS TO FIND A MEANS OF RELEASING

THE ELEVEN NEWSWORKERS PROVIDED A GOOD COVER STORY COULD BE FOUND.

WITH THIS IN MIND HE HAD EXAMINED THEIR FAMILY BACKGROUND, HEALTH

AND THE CIRCUMSTANCES OF EACH OFFENCE AND SENTENCE AND HAD EVEN

CONSIDERED THE MOST EXTREME POSSIBILITIES. AS A RESULT HE HAD BEEN

ABLE TO HIT ON THE DEVICE OF REDUCING WONG CHAK'S SENTENCE SO THAT

ALL WOULD BE OUT BY EARLY OCTOBER, BUT THE LATTER EXERCISE HAD

STRETCHED CREDIBILITY TO THE LIMIT. ALREADY THE CHINA MAIL ON 3

JUNE HAD GIVEN FRONT PAGE HEADLINES TO A LETTER FROM 80 PRISONERS

ACCUSING THE BOARD OF REVIEW OF BEING PARTICULARLY PARTIAL TOWARDS

LEFT WING PRISONERS. THE FULL REPERCUSSIONS WERE NOT YET OVER SEMI-

COLON AND IF THE LAW WERE SEEN TO BE BENT FURTHER IN FAVOUR OF THE
NEWSWORKERS HE GENUINELY FEARED THE POSSIBILITY OF SERIOUS RIOTS

AND TROUBLES IN THE PRISONS, MANY OF WHICH WERE 'OPEN

3. THE GOVERNOR CONSIDERED IT WAS BY NO MEANS CERTAIN THAT THE EARLIER
RELEASE OF THE NEWSWORKERS WOULD EXPEDITE GREY'S RELEASE.

HE BELIEVED THERE WAS AT PRESENT THE NEAREST APPROACH TO A DEAL THAT
GREY WOULD BE OUT IN OCTOBER. EXPERIENCE HAD SHOWN THAT A FURTHER MOVE
BY US NOW MIGHT ONLY CONFUSE AND PUZZLE THE CHINESE, OCTOBER WAS NOT FAR
OFF AND IN THE MEANTIME HE WOULD DO HIS BEST

/TO ENSURE

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TO ENSURE THAT NO ACTION WAS TAKEN BY THE HONG KONG AUTHORITIES

WHICH THE CHINESE MIGHT REGARD AS PROVOCATIVE OR USE AS A PRETEX?

FOR UPSETTING THE DEAL.

4. THE GOVERNOR SAID THAT HE WOULD CERTAINLY CONTINUE TO SEARCH

FOR A DEFENSIBLE MEANS OF EARLIER RELEASE BUT IN THE ABOVE

CIRCUMSTANCES HE WOULD BE LESS THAN HONEST IF HE DID NOT SAY

THAT THE PROSPECTS WERE NOT GOOD. HE COULD NOT AGREE TO A FLAT

POLITICAL DEAL WITHOUT AN ADEQUATE COVER STORY SINCE THIS WOULD

REPRESENT A FUNDAMENTAL REVERSAL OF OUR POLICY TOWARDS CHINA OVER

HONG KONG, NAMELY THAT OF NOT GIVING WAY UNDER PRESSURE SEMICOLON

THIS WOULD HAVE INCALCULABLE CONSEQUENCES. BUT HE WOULD EXAMINE ALL

MEANS SHORT OF THIS.

5. IT WAS AGREED THAT THE GOVERNOR WOULD REEXAMINE EVERY ASPECT AND

SEND A FULL APPRAISAL BY MY RETURN ON 19 JUNE.

5. I DOUBT IF THE GOVERNOR'S FINAL ASSESSMENT WILL DIFFER GREATLY

FROM ABOVE. HOWEVER I WILL DEFER MY RECOMMENDATION UNTIL I HAVE

SEEN IT.

7. THE IMPLICATIONS OF THE BROOKE CASE FOR GREY ARE HARDER TO

ASSESS FROM HERE, BUT IT WOULD CLEARLY BE VERY DESIRABLE TO DEFER

PUBLIC KNOWLEDGE OF ANY DEAL OVER BROOKE UNTIL AFTER OCTOBER SINCE

(A) IT WOULD STIMULATE EXTREME PUBLIC PRESSURE FOR ACTION OVER

GREY AND

(B) IT MIGHT CAUSE AN ADVERSE REACTION IN PEKING SINCE WE HAVE

REPEATEDLY TOLD THE CHINESE THAT WE COULD NOT AS A DIRECT BARGAIN

RELEASE CONVICTED PRISONERS IN HONG KONG IN EXCHANGE FOR GREY.

BOTH OF THESE WOULD, IN MY VIEW, AFFECT ADVERSELY GREY'S CHANCES OF

EARLY RELEASE.

SIR D. TRENCH

PRISEC

XXXXX

H

SECRET AND PERSONAL

Fre

isalı

20 May, 1969

pekooló

In your letter of 5 Hay you reported that the Prime Minister thought
that an early initiative should be taken on Grey, particularly in view
of the way the Brooke case was develo, ing.

As you will have seen from the press there have been recent developments
in Hong Kong relevant to the Grey case. On 9 May the Hong Kong
Government announced the first results of a review of the sentences on
long-term prisoners convicted for offences arising out of the troubles
in 1967. Those who had their sentences reduced included Wong Chak, one
of the eleven imprisoned newsworkers whom the Chinese have linked with
Grey. Wong Chak had his sentence reduced from five to three years, which
means that he should be released with full remission on 4 October. The
other ten newsworkers are already due out at various dates in September.
By the first week in October therefore all eleven will be out of prison.
In their statement last December, the Chinese said that "since the Hong
Kong British authorities continue to keep 13 now 117 patr.otic Chinese
journalists in jail, the Chinese Government is fully justified in
continuing to restrict Grey's freedom of movement". Thus the release of
the eleven will deprive the Chinese of the only justification they
themselves have advanced for detaining Grey. We cannot of course be
certain that they

/in turn

E. Youde, Esq., C.M.G., M.B.C.,

10 Downing Street.

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in turn vill release Grey. But there are good grounds for expecting that
they will. (Bank of China officials in London have let it be known
privately that they expect to see Grey released when the newsworkers are
freed.) The Chinese authorities have never attempted to relate the case
of Grey to developments in Hong Kong other than those affecting the
local communist press. They have made considerable use of their December
statement throughout the world in justifying their position. We have had
various indications that Grey's continuing detention has been an
embarrassment to them, particularly in those countries whose esteem they
want. They would not find it easy now to change their ground and advance
a new justification for detaining him.

I turn now to the possible implications of the Brooke case for the Grey
case. As soon as it becomes known that we are prepared to make a bargain
with the Russians over Brooke we shall certainly be under increasing
pressure from sectors of opinion in this country to try to make a
bargain with the Chinese over Grey. But if arrangements to obtain the
release of Brooke in return for a concession on the Krogers do not
become known until September or later (as is envisaged at present) these
arrangements need not have any direct Implications for the Grey case."
In September we shall be able to say (with precise dates) that all the
eleven newsworkers whom the Chinese have linked with Grey, will be out
of prison within a matter of days; and we should at that time have
little difficulty in convincing the public here that we had done or were
just on the point of doing all that we properly could to facilitate
Grey's release. Thus if we can hold to the September timing in the
Brooke case, we can in the meantime continue to handle the Grey case on
its merits.

Even so, the Foreign and Commonwealth Secretary by no means rules out
the possibility of some initiative over Grey. Broadly speaking three
courses have been under consideration here:-

/(a)

[

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(a) to let matters take their course in Hong Kong;

(b) to propose to the Governor that he should remit

the sentence of at any rate ten of the newsworkers a matter of weeks
before their due release dates; and

(c) to ask the Governor to try to devise some

procedure which would ensure the release of all the eleven newsworkers
in the immediate future.

Each of these courses has its merits and disadvantages. The Governor of
Hong Kong has hitherto considered that the premature release of the
newsworkers in Hong Kong carried unacceptable risks for the wellbeing of
Hong Kong, both now and in the future; and we have supported him in
this. His reluctance to do so has, understandably, been reinforced by
the fact that the Chinese have already rejected an exchange of Grey for
the eleven newsworkers. They want the latter released unconditionally in
Hong Kong itself for maximum political effect. However, the Foreign and
Consonwealth Secretary has directed that Lord Shepherd, who is visiting
Hong Kong between 1 and 7 June, and the Governor should carefully weigh
all the issues involved with a view to assessing whether the time has
not come when the risks of premature release are acceptable. It may be
that the Governor will strongly maintain his objections; in which case
the Foreign and Commonwealth Secretary vill wish to reconsider the
matter in the light of these objections. You will readily understand the
unfortunate effects it could have in Hong Kong if the impression were to
be created of a serious divergence of view between the Hong Kong
authorities and ourselves on a watter pertaining to the security of Hong
Kong.

+

SECRET AND PERSONAL

(118281) D4. 391399 1,500μ 2μ9 Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret

Secret,

Confidential,

Restricted Unclassified.

PRIVACY MARKING

In Confidence

SECRET & PERSONAL

DRAFT

Letter

Type 1 +

To:-

E. Youde, Esq., C.M.G., M.B.E. No. 10 Downing Street, S.W.1.

From

Private Secretary

Telephone No. & Ext.

Copy to: D. G. Jonés, Esq..

Cabinet office.

Department

Lotar despitenes by Private Sacratary's Ded

20 MAY 1969

In your letter of 5 May you reported that the

Prime Minister thought that an early initiative should

be taken on Grey, particularly in view of the way the

Brooke case was developing.

2. As you will have seen from the press there have

been recent developments in Hong Kong relevant to the

Grey case. On 9 May the Hong Kong Government

announced the first results of a review of the sentences

on long-term prisoners convicted for offences arising

out of the troubles in 1967. Those who had their

sentences reduced included Wong Chak, one of the

eleven imprisoned newsworkers whom the Chinese have

linked with Grey. Wong Chak had his sentence reduced

from five to three years, which means that he should be

released with full remission on 4 October. The other

ten newsworkers are already due out at various dates in

September. By the first week in October therefore all

eleven will be out of prison. In their statement last

December, the Chinese said that "since the Hong Kong

British authorities continue to keep 13 now 117

patriotic Chinese journalists in jail, the Chinese

Government is fully justified in continuing to restrict

Grey's freedom of movment". Thus the release of the eleven will deprive
the Chinese of the only justification

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NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET & PERSONAL

they themselves have advanced for detaining Grey

We cannot of course be certain that they in turn

will release Grey. But there are good grounds

for expecting that they will. (Bank of China

officials in London have let it be known

privately that they expect to see Grey released

when the newsworkers are freed.) The Chinese

authorities have never attempted to relate the

case of Grey to developments in Hong Kong other than

local communist

those affecting the/press, They have made

considerable use of their December statement

throughout the world in justifying their

position. We have had various indications that

Grey's continuing detention has been an

embarrassment to them, particularly in those

countries whose esteem they want. They would

not find it easy now to change their ground and

advance a new justification for detaining him.

3. I turn now to the possible implications of

the Brooke case for the Grey case. As soon as

it becomes known that we are prepared to make a

bargain with the Russians over Brooke we shall

certainly be under increasing pressure from

sectors of opinion in this country to try to

make a bargain with the Chinese over Grey.

But

if arrangements to obtain the release of Brooke

in return for a concession on the Krogers do

or later not become known until September (as is envisaged

at present) these arrangements need not have any

direct implications for the Grey case. In

September we shall be able to say (with precise

dates) that all the eleven newsworkers whom the

Chinese have linked with Grey, will be out of

prison within a matter of days; and we should at

that time have little difficulty in convincing

2

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WIBIL 51-7406

SECRET & PERSONAL

the public here that we had done or were just

on the point of doing all that we properly

could to facilitate Grey's release. Thus if

we can hold to the September timing in the

Brooke case, we can in the meantime continue

to handle the Grey case on its merits.

4. Even so, the Foreign and Commonwealth

Secretary by no means rules out the possibility

of some initiative over Grey.

Broadly

speaking three courses have been under

consideration here:

a)

b)

c)

to let matters take their course in Hong

Kong;

to propose to the Governor that he should

remit the sentence of at any rate ten of

the newsworkers a matter of weeks before

their due release dates; and

to ask the Governor to try to devise some

procedure which would ensure the release

of all the eleven newsworkers in the

immediate future.

Each of these courses has its merits and

disadvantages. The Governor of Hong Kong has

hitherto considered that the premature release

of the newsworkers in Hong Kong carried

unacceptable risks for the wellbeing of Hong

Kong, both now and in the future; and we have

supported him in this. His reluctance to do

so has, understandably, been reinforced by the

fact that the Chinese have already rejected

an exchange of Grey for the eleven newsworkers,

They want the latter released unconditionally

in Hong Kong itself for maximum political

effect.

However, the Foreign and Commonwealth

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SECRET & PERSONAL

Secretary has directed that Lord Shepherd,

who is visiting Hong Kong between 1 and 7

June, and the Governor should carefully weigh

all the issues involved with a view to

assessing whether the time has not come when

the risks of premature release are acceptable.

It may be that the Governor will strongly

maintain his objections; in which case the

Foreign and Commonwealth Secretary will wish

to reconsider the matter in the light of

these objections. You will readily

understand the unfortunate effects it could

have in Hong Kong if the impression were to

be created of a serious divergence of view

between the Hong Kong authorities and

ourselves on a matter pertaining to the

security of Hong Kong.

١٩

SECRET & PERSONAL

SECRET

Flag A

Ит. Моторбо Mr. Họ

PROBLEM

Puvalé Sey

Secretary of State.

I gue

MUS

MR ANTHONY GREY OF REUTERS

8:1A

On 5 May Mr. Youde wrote to the Private Secretary

reporting that the Prime Minister thought that "it would

be better to get the Grey case out of the way before the

arrangements to obtain the release of Brooke in return for

a concession on the Krogers come to a head and become known".

I have delayed submitting a reply against the possibility

of a more precise indication of timings in the Brooke case. But further
delay would seem undesirable. RECOMMENDATION

2. I recommend that a reply be sent in the terms of the

attached draft. Hong Kong Department and, in respect of

the Brooke case, Sir T. Brimelow concur.

BACKGROUND

3. The background is to be found in the papers beginning Flag Bh with my
submission of 6 May and ending with the Secretary

1 of State's minute of 9 May.

Jane Wing гру

(James Murray)

16 May, 1969.

ipa hoole

Copies to:

Mr. Baker

Sir J. Johnston

Mr. Carter

1975

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Dift to isme

19

ге

PRIME

MINISTER

SECRET AND PERSONAL

Dear Jahny.

F.E. DefF Ce: Sofs

PUS.

Aufl. babae.

A16 R

10 Downing Street Whitehall

5

Sist. Bi hay 5, 1969 Suis J. Johnsten

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