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Chinese assert 'no basic change'; but in practice some proposals contradict this. Way now open for further substantive discussion.
But final outcome not yet clear. Chinese still plugging September 1984 deadline. But have made clear prefer bilateral statement with us if possible.
Chinese propaganda
7.
Propaganda recently toned down. Fewer attacks on British 'colonialism' more on
more on reassurance Hong Kong people. people still sceptical.
Hong Kong
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