ESSENTIAL FACTS

CONFIDENTIAL

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1. Miss Clare Hollingworth is a former correspondent of the "Daily

Telegraph" who now lectures full-time at Hong Kong University. She

is a frequent visitor to London where she has recently lectured

twice on the future of Hong Kong.

2. Miss Hollingworth knows a number of senior Chinese officials.

Early in August the new Military Attaché at the Chinese Embassy told

her that the Sino-British talks on Hong Kong's future were not

proceeding as well as they should, essentially because of our

intransigence over the sovereignty issue.

CONFIDENTIAL

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