CONFIDENTIAL

(4)

stability and in its ability to pay its way

rests to a very large degree on the constitutional

relationship which Hong Kong has with Britain.

There may on occasion be a conflict between the

trading interests of Britain and those of Hong Kong.

This cannot be avoided. But the Secretary of State

could assure the Unofficial Members that Hong Kong's

interests can never be ignored by Britain in her

efforts to seek fair and reasonable solutions to

problems that may arise.

2

CONFIDENTIAL

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