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would give the Chinese an effective right of veto over the implementation of the scheme. A detailed note on Mr Adley's proposed amendments is attached.

4. At their last meeting on 8 May, Mr Adley suggested that the Secretary of State should see Madame Zhang Youyun

of the Chinese Embassy. Madame Zhang is number 3 in the

Chinese Embassy and leads on Hong Kong issues.

She is well

known to the FCO and is a regular and valued contact: she is one of our more sympathetic interlocutors.

5. On 8 May Mr Adley also referred to his efforts to

arrange for an All Party Group of MPs to visit the PRC later this year.

If Mr Adley mentions this again, the Secretary of State may wish to recall that the British group of the

Inter-Parliamentary Union have invited the Chinese NPC

members to visit Britain in November of this year.

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