CONFIDEN TI AL

countries wish to regard it as the ending

of an anomalous situation that was a

hindrance to the development of their

long term relations with China? Would it,

indeed, be in Britain's best long term

interests to surrender Hong Kong before

Chinese pressures become intollerable?

And what would become of the 2 million

plus British subjects in the colony?

CONFIDENTIAL

NOTHING TO BE WRITTEN IN THIS MARGIN

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