CHECKLIST

1.

Lease on 92% of

erritory expires 1997

2.

Need to remove

uncertainty.

3. Talks. 14 rounds.

4. Common aim.

5.

Continued British

6.

Administration not

realistic.

Examining arrangements for high degree of autonomy under Chinese sovereignty.

7. British objectives:

continuity and

8.

agreement formally recording arrangements.

Believe good grounds for achieving agreement

/cont'd

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