Conclusion

9.

The best options from our point of view are

C followed by D.

10.

B to F could all be accompanied by requests for concessions from Chinese which could be political (recognition of sovereignty), diplomatic (official Chinese representation) or administrative (either

influence on government or concessions to assist CPG earnings). These could only be considered in the light of what was offered in return.

Hong Kong 5 May 1981

SECRET

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