CONFIDENTIAL

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·7-

an increasingly important source of financial and commercial

expertise.

The Chinese therefore share our interest in maintain-

ing the stability and prosperity of the territory and have been

at pains to reassure local and foreign investors that China is

satisfied with the status quo and has no early intention of

changing it. Particular emphasis was laid on this point by Vice

Premier Leng Xiaoping during an official visit by the Governor

to China in March (an unprecedented visit that was in itself a

firm indication of the Chinese desire for close cooperation with

the present Hong Kong administration).

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