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SECRET AND PERSONAL

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3.

The aim would be to provide background to references in the main paper to Chinese moves to industrialise southern Guangdong and, possibly, to achieve an eventual 'fusion' of Hong Kong/Macao in the area. As it will be one part of a general economic annexe, we would not envisage this piece being longer than two pages.

4.

I am sorry to throw this at you but it seems logical for you to have the first stab. It would be very helpful to have a draft by the end of January.

5.

I am writing to you personally because of the sensitivity of the plan for the main paper. You may wish to commission the Hong Kong/Guangdong sections as a quite independent request from London.

Juns

Dick

R D Clift

Hong Kong and General Department

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SECRET AND PERSONAL

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