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2.
had authority to ask for a special kind of lease or that they had done so. Since Li knew what I was going to speak about, I think we must take this as a considered reaction. Whatever the truth about the approaches made to us allegedly on behalf of China Resources, it seems that, at the political level, the Chinese do not at present wish to use this opportunity to deal with the leases issue in an indirect manner.
6.
We may still hear more of this saga when China Resources respond to SNT, or through the intermediary who will, no doubt, put a different gloss on what has occurred. Even if however, as seems likely we can make no further progress with a special type of lease for the Tin Shui Wai project, this exchange has had the merit of making it clear to the Chinese what sort of leases might be available, and our willingness to consider their use, if they wish to use this means to help deal with the problem of confidence during the 1980s without facing directly the main issue of the future. It is thus a useful part of the essential nudging and educational process.
сс
(D C Wilson)
RJT McLaren Esq Far Eastern Department
M W Atkinson Esq MBE PEKING
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