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serve the New Territories.

4. The Chief Secretary's statement of 15 February will be the first

public statement of the Hong Kong Government's intentions. It

follows the lines already agreed by Ministers, and there is no

reason why we should not agree to it. Mr Luce may however wish to

be aware of this development.

5. To allow the Governor to present the statement to EXCO before 15 February he has asked for our comments by 7 February.

Blis

R D Clift

6 February 1984

Hong Kong Department

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