The Prime Minister could:
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- thank Mr Kaifu for recent Japanese approaches to the Chinese, which may have helped bring agreement on the airport;
suggest that our two Governments keep in close touch on
Hong Kong and China; and
urge him to keep talking to the Chinese about Hong Kong, reminding them that international business confidence
depends on a smooth transition in 1997, with good
Sino-British co-operation to that effect, and on Hong Kong's clearly retaining a high degree of autonomy.
ANTAAU/2
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