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Joint Liaison Group over the implementation of the

agreement; and our perception of concerns in Hong Kong.

However we do not think it will be desirable or necessary

to go into matters of detail, and there will be many

non-Hong Kong issues to be covered in the short time

available.

3.

The second aspect of the visit will of course be

Sino-British relations, and in particular trade. It will

be important, within the constraints of a short visit

with the agreement at centre stage, for the Prime

Minister to give positive signals. Against this, it will

be presentationally important, especially for Hong Kong

consumption, not to give commentators any opportunity to

claim that we have been influenced in our conduct of the

Hong Kong negotiations by hopes of commercial gain. This

precludes a high public profile for commercial matters

during the visit; but at the same time trade can be

promoted strongly in private talks.

4.

Against this background, we see the main non-Hong

Kong objectives of the talks with Premier Zhao as:

i) to develop the good personal rapport with the

Premier (bearing in mind also his visit to Britain

planned for 1985);

ii)

to demonstrate our desire that our bilateral

relations, which are already good in theory, should gain

in substance; and in particular.

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