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CONFIDENTIAL

of immigration from Hong Kong (if present trends continue,

20,000 per year for a total of 200,000 by the end of

the decade) and flexible returning resident policy);

We would appreciate if, in future, the UK could make

reference to a general agreement by friends to assist in

confidence building process, and to the fact that

there are discussions with a number of countries

and with the PRC on means to reassure the Hong Kong

population that all agree on the need for an economically

stable and prosperous Hong Kong.

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