CONFIDENTIAL
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that the willingness to allow two distinct social systems to co-exist within China was illustrative of the innovative Chinese character. He personally understood the importance of confidence in Hong Kong, based on freedom of enterprise, and said in reply to my query, that it was understood in Peking. He also mentioned Hong Kong's role as a point of transit for indirect trade with Taiwan, and China's intention that this would continue after a future agreement.
4.
I asked Ji whether he saw a connexion between the Hong Kong and Taiwan questions. He said that he did to the extent that a successful outcome of our talks on Hong Kong would encourage the Taiwanese to talk with Peking. I asked what timetable they were working to for reunification with Taiwan. He said that China could not allow the present Administration to continue indefinitely, but would be patient. The Taiwanese were not as yet talking about the future; he was encouraged that our two governments were doing so.
5.
孽
Ji proposed that we should meet again before long and seemed interested in maintaining a regular exchange. You may like to bear this in mind in case there were ever anything specific which it would be useful to convey to him.
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Sir E Youde
HONG KONG
Sir P Cradock - PEKING
CONFIDENTIAL
You'
Den
Derek Thomas
ever,
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