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8.
CONFIDENTIAL
but that she cannot yet give a formal reply.
this connexion, Princess Alexandra and
I
Mr Angus Ogilvy are very interested in visiting
China, possibly in the summer of 1973. If such
a visit would be welcome to the Chinese Government
we should like to know to what extent the Chinese
Government might wish any age to assume an
official character.
(b) Bilateral problems
Since the nadir of 1967 when our Mission in Peking
was sacked and some 20 British subjects (including
the Reuters correspondent Mr Anthony Grey) were
incarcerated there has been a steady improvement
in our relations. A number of contentious
bilateral issues still exist.
9. By far the most important issue which will
come up in this context is the Chinese proposal
that they should have an official representative
in Hong Kong. The Secretary of State will not
wish to broach the subject himself. Mr Royle told
Mr Ch'iao Kuan-hua in June that we could not accept
the proposal but the Chinese have indicated that
they intend to revert to it. If, as seems
inevitable, the Chinese do so, the Secretary of
State will wish to tell the Chinese that while he
has carefully considered the proposal, he does not
feel able to accept it. If necessary, he will
wish to explain the reasons for this decision:
present arrangements in Hong Kong are satisfactory,
and the presence in Hong Kong of an officiel of the,
kind the Chinese have in mind could prove an
/embarrassment