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SECRET

WILLIAMSBURG SUMMIT : BILATERAL WITH CANADA

FUTURE OF HONG KONG

POINTS TO MAKE (FOR DEFENSIVE USE)

DSR 11C

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1.

Meetings with Chinese began last October and are

continuing through diplomatic channels in Peking.

2.

Common aim is to maintain Hong Kong's stability and

prosperity. Talks confidential. No timetable.

3.

Meanwhile important for all concerned that nothing is

said or done to damage confidence in Hong Kong.

4

No possible solution that is acceptable to people of Hong Kong and Parliament can be ruled out.

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