fco-21-490-detention-of-anthony-grey — Page 3

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IT WOULD SEEM THAT THIS DIFFERENCE

3. TO THE CHINESE WE WOULD SAY, THROUGH CATER, THAT THERE HAS

SEEN NO INCONSISTENCY IN CUR ATTITUDES, YE OFFERED THEM A SIMILAR
ARLAMENENT

EXCHATICE ON TERMS, INDEED, EVEN ORE FAVOURABLE TO THEM: BUT THEY

HAD REFUSED TO ACCEPT THE REPATRIATION OF THE NEWSWORKERS.

4. HOVEVER, THERE IS OF COURSE NO PUBLIC KNOWLEDGE OF THESE

NEGOTIATIONS. 13 BACKGROUND PRESS BRIEFINGS AND PRIVATE TALKS WITH

RESPONSIBLE JOURNALISTS, ETC., WE WOULD THEREFORE STRESS THE

ESSENTIAL DIFFERENCE BETWEEN THE TWO CASES, AS IN PARAGRAPH 2 ABOVE.

THERE

TOP SECRET

I

:

Berge

Вго

TOP SECRET

-2-

THERE WOULD PROBABLY SE LITTLE HARM (SINCE IT HAS BEEN SAID BEFORE

AS LONG AGO AS 1967) IN ADDING THAT HAD THE CHINESE SUGGESTED A:!

ARRANGEMENT UNDER WHICH PRISONERS LEFT THE COLONY FOR CHINA, 14.STEAD

CF DEMANDING THEIR RELEASE IN HONG KONG, THEN A QUITE DIFFERENT

SITUATION WOULD HAVE BEEN CREATED AND THE CHINESE REQUEST COULD HAVE

BEEN CONSIDERED. THERE HAD BEEN ONE OR TWO CASES IN THE PAST WHERE,

IN SPECIAL CIRCUMSTANCES, THE PREROGATIVE HAD BEEN USED TO RELEASE

CONVICTED PERSONS IN ORDER TO PERMIT. THEM TO RETURN TO THEIR OWN

COUNTRIES, AND THIS WAS A JUSTIFIABLE USE OF THE PREROGATIVE. BUT

RETURN TO CHINA WAS NOT WHAT THE CHILLESE HAD DEMANDED AND HOW NE

"IGHT OR NIGHT NOT HAVE ACTUALLY RESPONDED WAS AN ACADEMIC QUESTION."

5. EARLY WARMING OF ANY POSSIBILITY OF THE KAGGER/BROCKE DEAL COING

THROUGH WOULD BE HELPFUL. IT WOULD OF COURSE BE BEST FROM OUR POINT

OF VIEW IF NOTHING WAS SAID ABOUT BROOKE AND THE KROGERS UNTIL GREY

HAS BEEN RELEASED.

FCO PLEASE PASS ROUTINE TO PEKING.

SIR D.TRENCH

PERMUN.

[REPEATED AS REQUESTED]

+

TOP SECRET

21/7

xx

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No. FED

DEPARTMENT

SECURITY CLASSIFICATION

Top Secret 21/7

Seche

Cool Bitial

Rangpicted

TOP SECRET

PRIORITY MARKINGS

(Date).....

Flash

Immediate

Routine

• Date and time (G,M.T.) telegram should

reach addressee(a).

-=-=-=-=-----------

मात्र

фот

CYPHER

NO COPIES MADE

fication]

TOP SECRET

[Secu

Security classification -if any

[

Privacy marking -if any

]

TO PARENJA MAANA

PRIVACY MARKING

In Confidence

En Clair. Code Cypher

Draft Telegram to:-

[Codeword-if any]..................

Addressed to

YOVERNOR telegram No..

ONG KONG

No Nổ.

(Date)

And to:-

-----11 ---

repeated for information to

Metod sada juda manga spojky

CHONG KONG 7

(date)

RECEIV...) IN

T доро

28 JUL 1969

FEL

Repeat to:-

Saving to:---

Distribution:- As from

No cafus quad.

Copies to:-

Saving to......

P

Personal for Governor from Murray.

Your telegram No. 566 of 18 July 7: Brooke

and Grey cases.

Strictly for your own information it is now

practically certain that Brooke will arrive in this

country on the morning of 24 July and that the

of State Foreign-and-Gemmonwealth Secretary will make a

Full account statement immediately thereafter. (far Bastern

was taken of the argument Department and Hong Kong Department argued
strongly)

that it would be best from the point of view of the

Grey case if nothing were said about Brooke and the

Kroggers until Grey had been released; but it was

decided that other considerations were overriding).

2. It was very helpful to have your preliminary

ideas about publicity. We shall be letting you

have our comments as soon as possible.

Jul 21 July

TOP SECRET

1800721/72

PEC 130/1

TOP SECRET

24/7

พา

22 July, 1969.

1997

We were interested by Contact's remarka to Cater on 19 Jume regarding
the significance of 1997 (Your Telegram No. 497 of 21 June, paragraph
4). What importance if any do you attach to Contact's remarks? We
naturally wondered whether he was indulging in personal speculation or
dropping a hint on instructions.

A. F. Maddocks, Esq.,

HONG KONG,

TOP SECRET

(James Murray)

Desbabled 2412

AWR.

898

NOTHING TO BE WRITTEN IN THIS MARGIN

WEL SE-7406

x/2

тор

SECRET

AF Mallocks Esq

Hong Kong

1997

from Mr Meanary

We were finterested

èrestia by

Contact's remarks are neare

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19 June repanding персидия

the significance of 1997

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22 JUL 1969

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I attach a draft submission as reques

Amand

( D. I. Boyd) 5 August, 1969.

Me Samming tras agreed

M

ted.

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M.

[

MR MURRAY

5.

A very interesting

conversation.

Jower

Yumay, 3 Isla

With the Compliments of the

M. Rycon los 317

The Cat 4/7 Political Adviser

Me With

The Bayt. T3x-4/68.

Hong Kong

эн. Димова.

Political Adviser

SECRET

897

/this

On Wednesday, 18th June Mr. K.C. Jay telephoned asking to see me soon in
order that he might pass on a message:

he uggested that we might meet next day (19th June) and accordingly

arranged to see him at his house (19th June being a public holiday) at
11.30 a.m. I had a two-hour discussion with Jay and then a long luncheon
session with his family: four of his sons were present (just returned
from university in North America), also his wife and his mistress.

2.

Jay was in a confident, almost boisterous mood:

be was anxious to pass to me a message from Prime Minister CHOU En-lai
which Jay described as being "very good". In reply to the report which
Jay had submitted recently (please see my report of 13th June), CHOU
allegedly had replied that previously it had been his intention that
directly negotiations with the H.K.G. over the newsworkers had been
completed, Anthony Grey and other Britons held in China should be
released: however, in view of the failure of these negotiations it was
not possible for the Chinese to proceed with this action. Referring to
Jay's recommendation that consideration be given to releasing Grey
before the release of the 11 nevsvorkers, CHOU had given the assurance
that Grey would now "only be kept as long as necessary On saying this,
Jay positively beamed with pleasure and said that was very good news
indeed. I apologised For being rather slow to recognise good news and
asked him whether he would interpret these words in a little more detail
as,on the surface, the message meant very little to me. Jay then
explained that by using the phrase "only as long as necessary" he
believed that CHOU was saying that, once Peking was convinced that the
newsworkers would in fact be released, then there would no longer be any
need to detain Anthony Grey. Jay then went on to say that he had passed
to LI Cho-chih and to Paking a photostat copy of the list I had given
him on 11th June showing earliest dates of release of the 11
newsworkers: Jay was fairly confident that once it was understood in
Peking that the dates given on this list were definite "and legal", the
release of Grey would become more likely. I took this opportunity of
again pointing out to Jay that the dates of release shown on the list
were "the earliest dates of release" and that, should any of the
prisoners misbehave themselves, it was possible that the date of release
could be put back. Jay said he appreciated this point but assured me
that none of these 11, now that their date for release vas such a short
time away, would cause trouble.

3.

Jay then went on to say that he had replied to CHOU, both directly and
indirectly through LI Cho-chik, to the effect that be vas pleased and
encouraged by the Prime Minister's message and had assumed that "as
necessary" meant as soon as it is certain that the 11 will be released":
he thought that such action would be favourably commented upon not only
by Europeans and senior people in Hong Kong but also by the world press.

4.

For the rest of the interview Jay was in an expansive mood and for the
first time spoke very freely of his views on Hong Kong and China, the
future of Hong Kong and also his understanding of Peking's policy and
attitude to these matters.

SECRET

/contd....

Las

SECRET

2

II. 5.

Jay enquired in a rather jocular fashion whether I was prepared to
comment on rumours going round communist circles as to the future
Governor of Hong Kong: I said that I was prepared to comment to the best
of my ability but my knowledge of this subject was of course very
limited. Jay said that, although

ven the communists felt this was "nonsense", nevertheless in the last
two or three veeks there had been rumours to the effect that Hr. John
Keswick vas probably going to be the next Governor of Hong Kong: I said
that I had seen a similar statement in the China Mail some months ago
but that this obviously vas a question of "newspaper fishing": that it
was highly unlikely that a man of Mr. Keswick's age would be appointed
Governor, nor did I think it likely that the next Governor would be a
man from the British business community: to date, Governors of Hong Kong
had tended to be professional administrators/civil servants. Jay then
said that the other rumour was to the effect that the new Governor was
going to be sir sik-nin CHAU: I again said that I thought this very
unlikely indeed and gave similar reasons as for Keswick. It was here
that I realised that Jay was leading, rather obviously and not too
cleverly, on to a matter of policy: mention of Sir Sik-nin CHAU led Jay
to ask whether it was likely that the British Government would ever
appoint a Chinese as Governor of Hong Kong. Without giving me any time
to reply, he immediately said "because this, I am quite sure, would be a
serious mistake": rather jokingly he said "you know the communist
Chinese they would think you were trying to set up a 3rd China".
Expanding on this a little, Jay said that he thought it most important
that Hong Kong should never have a Chinese Governor nor even a Chinese
who was "à sort of Governor" - I asked what he meant by this and he said
that obviously if the Governor vere away then the next senior man would
become temporary Governor. I explained that usually in these
circumstances, if the Governor were away on leave then the Colonial
Secretary would become either Acting Governor or, in the past, Officer
Administering the Government. Jay said that this was precisely what he
was getting at; as it would probably not be advisable to have a Chinese
Governor it would not be advisable to have a Chinese Colonial Secretary
just in case from time to time he was required to act as Governor.

-

Jay then went on to give his views of the future relationship of Hong
Kong to China and in a long and very diffuse discussion made some major
points: he emphasised that these views vere his own:-

(1) No matter what approaches China may make to Hong Kong

or to Britain, it must be remembered that they are communists and will
always regard the economic practices in Hong Kong, Britain and the
western world generally with great distaste: "we are the enemy of
communism and we must never forget it".

(2)

Repeatedly throughout this part of the discussion Jay emphasised that in
all our relations with China we must stand firm on what we as a
Government felt was right for Hong Kong, for example maintenance of law
and order must be paramount. "You must never put your- selves in the
position of Macau, where the authorities are dictated to by the
communists:.

**/contd..

III. 7.

SECKE!

-

(3) Bearing in mind the point made at (2) above, Jay thought that Hong
Kong's policy should always be ained at maintaining and, wherever
possible, improving its value to China. Hong Kong's value to China vas
manifold! it was not just a question of dollars and cents but also "of
political advantage" Jay explained this by saying that just as the vest
had China Watchers in Hong Kong so China had South East Asian Watchers
and Western World Vatchers in Hong Kong. But of greatest importance, in
Jay's opinion (and somewhat naturally in view of his main means of
livelihood) was the fact that China could easily and readily obtain
foreign exchange in or though Hong Kong *if it were not for Hong Kong
China would find it very difficult to obtain funds for its intelligence
agents overseas". Goting #HOU, Jay said that Hong Kong has nothing to
rear provided it remains of value to China. I pointed out that this was
perhaps all very well and a reasonable comment to make in the short
terx, but it was my experience, talking to young people in Hong Kong,
that they were concerned, perhaps over-concerned, about what the
position would be in 1997. Jay countered this in robust fashion, saying
that too much emphasis vas

(4)

(1)

-

-

placed on 1997 "it really means nothing": provided Hong Kong remains of
considerable value to China there is good reason for China to want to
see Hong Kong continue. Jay thought that it would be positively
embarrassing for China to try and absorb Hong Kong "and certainly they
would find it a liability rather than a very great asset",

It was Jay's opinion that the danger, so far as the Puture was
concerned, was not to be found in the relationship between Hong Kong and
China or Britain and China but rather between China and the U.S.A. If
the U.S.A. were ever to recognise China, if China were to hold its
reserves in U.S. dollars rather than sterling, if trade were to develop
in a big way between China and the U.S.A., then, according to Jay, the
value of Hong Kong would be very much reduced. Because of this (and here
Jay asked that I should keep this information only to myself) Jay had
for some years past done whatever he could to keep the Chinese from
becoming too interested in trade with the U.S.A. or dealing in U.S.
dollars. Nowadays, of course, this was not too difficult a problem but,
according to Jay, some 12 years ago there vere definite moves on the
part of both China and the U.S.A. to come to terms and be had done his
best to frustrate these moVES

Local Hong Kong problems

Communist schools. Jay said that in recent weeks sone members of the
teaching profession had shown signs of anxiety and frustration and had
talked of heating up the confrontation again. Jay had recently had a
long

SECTET

/contd..

ا نصاب بان

(2)

talk with LI Cho-chih on this matter and advised that everything
possible should be done to calm the teachers down and to channel their
efforts into becoming simply good teachers. LI had allegedly agreed with
Jay and said that he would do what he could to ensure that there was no
trouble from the communist schools:

that undoubtedly parents of students vere anxious that the schools
should provide education and not political indoctrination.

Referring to the recent theft in a communist bank, Jay said that there
vas a strong rumour amongst communist bankers that this had been à
put-up job by the Hong Kong Police: on being informed of this, Jay had
said that this vas absolute nonsense and had even been supported in this
line by LI Cho-chih. Nevertheless LI had recently asked Jay whether he
would pass on a message asking whether the Police would pursue enquiries
into the theft as energetically as possible. Jay said that he
appreciated that clearly the Police vere doing all they could in this
matter but that in view of his promise to LI he thought it advisable to
mention the natter to me.

20th June, 1969.

جعف

(J. Cater)

SECTET

SECRET

Political Adviser

As requested by you, I made arrangements to see kr. I.C. Jay during the
morning of Saturday, 14h June in order to pass to him the names and
brief details of the three confrontation risoners the sentences of whom
had been recommended for reduction to three years by the long-term Board
of Review: the prisoner's in question being LING Mus-yau, 10 Boi-chung
and CHING Chi-keung.

2.

Jay had little to say in return but went over some of the ground covered
in my previous zeeting with him on 11 June. He was hopeful that his
message to CHU In-lai would be well received. He had been a little
alarmed when speaking to LI Cho- chih and POON Ching-on that the latter
had been quite militant in his views about future relations with the
H.L.G. and had advocated violent action if necessary in view of the
H.X.G.'s refusal to negotiate over the newsworkers and other matters
outstanding from 1967. Jay hoped that his message to CHOU En-lai would
strengthen the hand of the more moderate factions in Peking.

3.

Jay, reverting to a conversation of some time ago, said that there was a
great deal of dissatisfaction among local communists with the way
affairs were being handled and that they had their own "trouble makerS":
just recently two members of the Bank of China had been dismissed -
CHENG Chih-jui and LI T'ien-yan.

201 June, 1969

elp.

(J. Cater)

SECRET

i

Reference............

1997

The most interesting Thing about Tel No 497 is the hint at x I wonder if
contact was speaking on instinctions?

Mr wrilans 122016

Thr Thunay

Чак

ANG

Jorrono a/s

ab

HK Dep. (M. (ammara)

PUSD (Fur West) MW 15/2

"W15/2

Very interesting. It might be worth arding

Alibrand Advant how much sugingwarme

lave experts

authard to it.

MATI

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22 July

[

CYPHER CAT A

PRIORITY HONG KONG

840

TOP COPY

2

COPY NO.

TOP SECRET

TO FOREIGN AND COMMONWEALTH OFFICE

TELEGRAM NUMBER 497

21 JUNE 1969; R.GI

IN

J

pako 21/2

23 JUN 1969

FC IJC

TOP SECRET ADDRESSED FCO TELEGRAM 497 OF 21 JUNE RFI PEKING.

721 MY TELEGRAM 391 ■ GREY AND POLICY IN HONG KONG.

ON 19 JUNE CATER HAD A LONG SESSION WITH HIS CONTACT.

2. CONTACT SAID HE HAD RECEIVED A MESSAGE FROM CHOU EN-LAI IN REPLY

TO HIS SUGGESTION THAT GREY SHOULD BE RELEASED BEFORE THE NEWSWORKERS

OME OUT IN SEPTEMBER AND OCTOBER. CHOU ALLEGEDLY REPLIED THAT IT HAD

BEEN HIS INTENTION TO RELEASE GREY AND OTHER BRITISH SUBJECTS HELD

IN CHINA ONCE THE NEGOTIATIONS WITH THE HONG KONG GOVERNMENT OVER

THE NEWSWORKERS HAD BEEN

COMPLETED BUT AS THOSE NEGOTIATIONS HAD FAILED IT WAS NOT POSSIBLE

FOR THE CHINESE TO PROCEED IN THAT WAY. REFERRING TO CONTACT'S

RECOMMENDATION IN FAVOUR OF AN EARLY RELEASE OF GREY, CHOU SAID THAT

GREY WOULD NOW ONLY BE KEPT AS LONG AS NECESSARY'. CONTACT

INTERPRETED THIS TO MEAN THAT GREY WOULD BE RELEASED ONCE PEKING WAS

CONVINCED THAT THE NEWSWORKERS WOULD IN FACT BE RELEASED. CATER

HAD GIVEN CONTACT ON 11 JUNE A LIST SHOWING THE 'EARLIEST DATES OF

RELEASE' OF THE 11 NEWSWORKERS. CONTACT HAD SENT A COPY OF THAT

LIST TO PEKING AND FELT CONFIDENT THAT PEKING WOULD NOW BELIEVE

THAT THE NEWSWORKERS WOULD COME OUT THEN, PROVIDED THEY CONTINUE TO

BEHAVE CORRECTLY.

/3. CONTACT

TOP SECRET

4

TOP SECRET

-2-

3. CONTACT THEN TURNED TO DISCUSS HONG KONG AFFAIRS AT SOME LENGTH

EMPHASISING THAT THE VIEWS EXPRESSED WERE HIS OWN. HE POINTED OUT

THE DANGERS OF APPOINTING A CHINESE TO BE GOVERNOR OR COLONIAL

SECRETARY. CATER ASSURED HIM THAT THESE DIFFICULTIES WERE WELL

UNDERSTOOD,

4. CONTACT SAID THAT IN PLANNING OUR LONG-TERM POLICY IN HONG KONG

WE SHOULD REMEMBER THAT THE CHINESE GOVERNMENT WERE COMMUNISTS AND

WOULD ALWAYS REGARD THE ECONOMIC PRACTICES OF HONG KONG AND BRITAIN

WITH GREAT DISTASTE. THEY WOULD CONTINUE TO BE ENEMIES. HE STRESSED

REPEATER Y THAT IT WAS ESSENTIAL THEREFORE THAT THE HONG KONG

GOVERNMENT MUST STAND FIRM ON WHAT WE AS A GOVERNMENT THOUGHT

RIGHT FOR HONG KONG. FOR EXAMPLE THE MAINTENANCE OF LAW AND ORDER

MUST BE PARAMOUNT. WE MUST NEVER PUT OURSELVES IN THE POSITION OF

MACAU, SUBJECT TO THOSE CONSIDERATIONS HONG KONG'S POLICY SHOULD BE

TOWARDS MAINTAINING AND, IF POSSIBLE, IMPROVING ITS VALUE TO CHINA.

IT WAS NOT ONLY AN ECONOMIC QUESTION. IT WAS ALSO A QUESTION OF

PROVIDING A BASE FOR CHINA'S 'SOUTH EAST ASIA WATCHERS' AND

"WESTERN WORLD WATCHERS'. CONTACT

STRONGLY ARGUED THAT TOO MUCH EMPHASIS WAS PLACED ON 1997, A DATE

WHICH REALLY MEANT NOTHING PROVIDED HONG KONG REMAINED OF VALUE TO

CHINA. IT WOULD BE EMBARRASSING FOR CHINA TO TRY AND ABSORB HONG

KONG SINCE IT WOULD BE A LIABILITY RATHER THAN AN ASSET. ONE THREAT

TO HONG KONG'S USEFULNESS TO CHINA WOULD BE AN INCREASE IN TRADE

AND RELATIONS BETWEEN CHINA AND THE UNITED STATES. IF CHINA EARNED

AMERICAN DOLLARS BY DIRECT TRADE THERE WOULD BE LESS INTEREST IN

HONG KONG

5. FULL TEXT OF CATER'S REPORT FOLLOWS BY BAG.

FCO PLEASE PASS ROUTINE TO PEKING.

SIR D. TRENCH

FILE 3

HEAD F.E.D.

HEAD H.K.D.

SIR J. JOHNSTON

[REPEATED AS REQUESTED]

MR. MORETON

SIR A. GALSWORTHY

HEAD P.U.8.D.

P.S.

TOP SECRET

TOP SECRET

TOP COPY

COPY NO..

126

CYPHER/CAT A

PRIORITY HONG KONG

LINO 478

TOP SECRET

TO FOREIGN AND COMMONWEALTH OFFICE

13 JUNE 1969

YRTEL 341: GREY.

117

R.V

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