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DSR 11C

4. Censession on sovereignty

not

confoe+

made without

affecting constitutional status of Hong Kong.

only be given for assurance on future,

Talks should

But should

on

the question

be exploratory, and agreed to be without prejudice to position of either side of sovereignty.

5.

When PM in Peking in Autumn will have to move

carefully, not offering/ concession on sovereignty until

they offer on British administration.

But this main

area of Hong Kong China visit. If obtained officials

can work out details.

5.

Does PM wish to discuss with colleagues? Perhaps not

all of OD but Defence and Home Secretaries and Chancellor

should probably be included.

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