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Background

3. Sir D. Hopson was summoned by Lo Kuei-po, Vice-Minister

for Foreign Affairs, on 8 March to receive a statement to the

effect that the Hong Kong situation was the crux of Sino-British

relations; that the British Government must reply to various

demands put forward by the Chinese Government on this subject;

and that only thereafter would it be possible to discuss

Flag B "secondary" matters (Peking telegram No. 176). The Chinese on

1244,

two occasions since then, in interviews with the Eission, have

insisted on the need for an early reply. Sir D. Hopson regards

this as a hopeful sign indicating a wish to settle outstanding

problems with us, though of course on terms acceptable to them

(Peking telegram No. 242). Sir D. Hopson put forward a draft

of a proposed statement (Peking telegram No. 243). The Governor

Flag E412A of Hong Kong commented (Hong Kong telegram No. 397); Sir D.

Flag Hopson replied (Peking telegram Nɔ. 267); the Governor commented

Flag

Flag

Flag

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23 again (Hong Kong telegram No. 437) and produced a redraft

148(Hong Kong telegram No. 338 of 30 March).

4. The only point of substance on which the Governor has not

been prepared to meet Sir D. Hopson is whether or not the

Chinese should be allowed a say in the eventual return to Hong

Kong of persons now in prison in Hong Kong who may, before the

termination of their sentences, be "allowed to reside in China"

(1.e. deported). I am sure the Governor is right in this; and

since Sir D. Hopson has not returned to the charge, we can take

it that he acquiesces.

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