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The Australians have asked separately if we could make available to them the contents of the four factual papers on how Hong Kong works which we handed to the Chinese. It would be damaging if the Chinese learnt that we had handed to a third party something laid on the negotiating table. We suggest that instead the Australians might be given a general account of what was in the papers (the contents of which were uncontentious).

The New Zealanders are also showing interest in Hong Kong both here and in Wellington. Like the Australians they have a regional interest as well as a close relationship with us. Again, Sir Geoffrey Howe will have an opportunity to say something to his New Zealand opposite number in mid-October; and Mr Whitney's visit in late September would also be a chance for a general exchange.

Finally, the Canadians take a close interest in China, and on occasions have passed us useful material in the Hong Kong context. But their perceptions of how things are going on Hong Kong are not always accurate. Briefings from us would help to set things straight. Here the Prime Minister's visit might be helpful. The Premier of Alberta, Mr Lougheed, whom Mrs Thatcher will meet, will just have returned from visiting China and Hong Kong. Mr Trudeau will be briefed on Hong Kong for the visit. (It is relevant that the Chinese Foreign Minister is visiting Canada in early October.)

We see no need to go

wider than these old Commonwealth countries for the moment. But we have in mind also the possibility of taking the Japanese a little more into our confidence at some stage. They have of course a role to play in keeping up investors' confidence.

In short, if the Prime Minister agrees, we propose to bring the New Zealanders and the Canadians into the picture at a high level, and to keep them and the Australians generally up-to-date. We shall continue to provide the Americans with material in a little more detail. It would

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/be desirable

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