CONFIDENTIAL

I, too, agree. The pamphlet seems to be couched in very moderate terms and to make a number of suggestions which we will have to take into account when preparing papers for the Secretary of State's visit. The Times report mentioned by Mr Male went a bit further and concluded that "Hong Kong with all its faults suits China as China suits Hong Kong" We propose to include a reference to this rather unhelpful comment from the Hong Kong correspondent in a draft letter which will shortly be submitted for the PUS's signature.

2. There were no questions about the pamphlet at this morning's News Department conference.

26 January 1976

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