8.

CONFIDENTIAL

Important also that Hong Kong people make their views known

to the Chinese. And important that the Chinese listen to them.

Need to convince the Chinese it is in their own long term interests to take account of the views of Hong Kong people. Anything you can do on this while in Peking also most helpful.

[Defensive]

9.

Sovereignty. We obviously differ from the Chinese on the

constitutional position. Must maintain this if asked. But no intention to be rigid. Looking for a practical arrangement for the future acceptable to Parliament and Hong Kong.

CONFIDENTIAL

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