* ix)

vii) Areas of disagreement with the Chinese [suggest removing emotive

reference to sovereignty. Answer now reads]

''Of course there are differences between us. If there were not

there would be no need for negotiation. However given our common

objective I believe.....for the Territory.''

viii) Recent steps taken by some South East Asian countries to woo Hong

*

Kong's investment. /Why no British counter to leaks from the Chinese side? Is our silence not damaging to confidence?

13 September 1983

IVOR ROBERTS

News Department

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