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to China last year it was clear that the Chinese had not given
the problem much thought. He thought that the Chinese would
simply like the problem to go away. Deng said "tell the people
to put their hearts at ease" but it was more than just hearts
that were at issue. Britain could not ignore the need to maintain
investor confidence nor the legal difficulties over sovereignty.
He thought a compromise was needed which would acknowledge
Chinese sovereignty but recognise the importance and value of
Hong Kong as a free port and accept the continuation of a
foreign, even British, element. Mr Dhanabalan noted the
problem but had no suggestions to offer.
13.
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Redacted under FOI exemption sections 27 (1), (2)
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