generally "cold war" in style

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all sides

used every available source of intelligence. But it had to be assumed rooms were "bugged", and consultations took place in car parks,

hotel restaurants, and in hotel rooms only

by written exchanges.

all kept 1⁄21⁄2 hour apart.

Delegations/Embassies

(e) We had to develop and maintain a

consistent set of negotiating constraints

which allowed us to rule out certain

Chinese demands. Unless some such limits

can be established early in negotiations,

and the Chinese side progressively acclima-

tised to them, it becomes very difficult

to respond to the incessant Chinese

response: "Your offer does not meet our

requirements". In the case of the finance

negotiations, the two cards we had to play

were (i) the Memoranda already agreed with

the Chinese side eventually we were able

to say we had "fulfilled the terms of the

Memorandum"; and (ii) the international

obligations arising from our OECD membership.

The second proved a useful tool in dividing

the Chinese side because the Bank of China

wished to appear a responsible member of

the International Financial Community and

thus to show respect for international

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