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5.

The whole question of all the Basic Law issues is more difficult. Although time constraints did not allow Mr Eggar to deal with each point in individual detail, (eg on the Grand Electoral College), my assessment is that the general sense of all the points has been covered by Mr Eggar in Cols 749 and 751-2, with the exception of Mr Grant's point about a referendum (Col 716). The only comment on that would be negative. I therefore recommend that no letters be sent on Basic Law issues.

20 July 1988

etwan

C T WOOD

HONG KONG DEPARTMENT

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