CONFIDENTIAL

arguments but is concerned (like us) about the impact of a

perceived "veto" by HMG in Hong Kong. We have reflected to him

Ministers' desire that the Hong Kong Government conclude for

themselves that the practical problems of hosting such an event are

overwhelming.

6.

There has been no contact with the Chinese about the idea.

Although Xu Jiatun, the head of NCNA in Hong Kong, reacted

favourably to the idea in public, it is most unlikely that the

Chinese Government have focussed on it or thought through the implications.

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