SECRET

embarra

Conclusions could be

rassment to the Chinese Government. drawn, however implausibly, about our motivation today in arranging for Hong Kong's return to China.

4.

All of this could have a potential detrimental effect on HMG's standing in Hong Kong and on confidence within the territory at a time when both must be sustained by every means at our disposal. It would clearly not be in HMG's interests for us to run

these risks.

Conten

CO Hum

SECRET

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