DSR 11C

4.

We realise that the idea must be considered in the

light of the Prime Minister's visit to China and Hong Kong,

as well as possible repercussions on relations between Hong

Kong and China. Our present view at official level is

that early notice of termination should allow any resentment

to cool off and should not seriously affect other major

issues. But we shall in any case submit to Ministers in

the light of your views.

5.

(For Peking)

Grateful your further views as mentioned

in para 5 of your telno 168..

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