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in other contexts. Their presence could be misconstrued.

14.

We

Sovereignty: Chinese and British positions well-known.

fully realise importance of sovereignty issue to China. We are not

inflexible. Are willing to consider any solution to Hong Kong's

future which would be acceptable to Britain, China and Hong Kong.

15. Acceptability: We are taking views of people of Hong Kong fully

into account. Made known to us through variety of official and

unofficial channels. In this context, Governor and unofficial

members of Hong Kong's Executive Council visited London early July

for consultations with Ministers. Mr Luce visiting Hong Kong 24-28

September.

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