CONFIDENTIAL

to our own position, discussion of practical measures to ensure stability/prosperity.

Well received.

11. Hong Kong public opinion. In close touch. Taken into account. Role of EXCO central. Governor and EXCO Unofficials again in London

Richard Luce in Hong Kong 24-28 September.

8 - 8 October.

12. Chinese propaganda. Recently less strident.

Inaccuracaies.

Contradictions,

13. Hong Kong dollar and stock market. Affected by Chinese

propaganda. Recent measures to stabilise Hong Kong dollar.

Working

well.

14. Parliamentary interest. Hope delicacy of issue will be grasped.

Important nothing said publicly to affect Hong Kong confidence

and/or complicate negotiations.

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CONFIDENTIAL

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