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tuyeaux in Hong Kong and official exchanges. in London
and Peking is the traditional method. To work this system
most arrangements must be dealt with on the local Hong
Hong nets, both because this is common-sense, and because
otherwise our exchanges with the Chinese in London and
Peking would become over-loaded with Hong Kong affairs and
the latter would become too vulnerable to ephemeral
political pressures in China.
But
11. The system just works enough to be supportable.
it does look very odd indeed, and it is hard to justify
logically our refusal to recognise an official Chinese
Representative in Hong Kong through whose office all this
business could pass. Particularly since in practice most
business already is conducted by offices in the Bank of
China building under the overall direction of Leung Wai-lam,
the holder of a diplomatic passport. I do, however, agree
with Mr Morgan that this is something which we must resist.
12. A Chinese Representative in Hong Kong might just be
acceptable if the relationship between Hong Kong and China
was defined and agreed. But without this there can be
no limit to what he could dlaim as his legitimate sphere of
activity, or to what his objectives might be, or to what
Communists would expect of him. It would be intolerable
for a Chinese Representative in Hong Kong to adopt a low
posture and, in any case, the Communist cadres would not
/allow
4.
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