MO

CONFIDENTIAL

+

CONCLUSION!

The immediate steps are:

To use the visit of the Guangdong official to probe Chinese thinking further, in order to establish direct contact with the Guangdong authorities;

To use the visit of the Foreign Secretary to try to ascertain the Peking Government's attitude.

In addition:

Action will continue at official level to resolve the outstanding issues;

Depending upon the outcome of the Foreign Secretary's visit, officials will hold early discussions with the Chinese;

On the issues requiring decisions, officials will report to Ministers consistent with the timescale of the project.

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