CONFIDENTIAL

10

The matter was being discussed frequently at present between

China and the US. China hoped that the US would not step

outside the scope which had been agreed between the two sides.

Mr Zhang reiterated that on concrete questions China's attitude

was always practical and reasonable. But if the US took unilateral

action without China's approval then stagnation or even retrogression was inevitable.

17.

The meeting ended at 11.30 am.

Copied to:

PS

PS/LPS

PS/PUS

Sir E Youde

Sir A Acland

Mr Donald

Mr Elliott, FED

Mr Clift, HKGD

HMA, Peking

Chancery, Peking (2)

Governor, Hong Kong

Political Adviser, Hong Kong

CONFIDENTIAL

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