SECRET

-2-

DSR 11C

5.

(If the Chinese ask about longer term problems).

Need to

Not too soon to open a dialogue on the longer term future

of Hong Kong. This is in both our interests.

understand each other's position.. But we need at the same

time a means of dealing with the New Territories leases

question, which need not affect the position of either side

on the longer term.

SECRET

89280 Dd 532113 200M 2/79 StS

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