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INTRODUCTION

During the last few months China's leaders have made comment on Hong Kong's status quo which local newspapers and magazines have interpreted as reassurances from China that there will be no change, politically or economically, despite the approaching expiry date of the lease of the New Territories.

The press also reported on new developments in the economic relations

between China and Hong Kong.

This paper reviews these press reports and comments.

Extracts from an article by Mr. Li Chiang, the Chinese Minister of Foreign Trade published in the "Red Flag" appears in the Appendix.

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