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looked into. I also said that agreeing on the boundaries

between Guangdong and Hong Kong could help.

8.

Huang Qun agreed on the importance of settling the

boundaries. Over dinner he said that proposals on this

question had now been sent to Peking. Guangdong would get in

touch with us for a further round of talks when Peking had

responded.

9.

Chen Wenli said that we had good cooperation to the

north (land boundary) and east (Mirs Bay). He admitted that cooperation was not good on the west. He was considering this

question. (The police have separately learned that the command

may now have been unified.)

10.

Huang Qun repeated the general point that it was not Chinese policy to seek to exercise jurisdiction in Hong Kong waters. Chen Wenli said that members of the security forces were severely dealt with if they sought to do so. There were

also strict instructions that arms were not to be used unless

there was a threat to life.

11.

I asked whether Huang Qun was able to respond to our

representations on the 22 January incident. I also referred to the Sunday Post article, about which NCNA complained to me on 26 January. I pointed out that the author stated explicitly in it that he had obtained his story from the police radio; and that the picture published of a Hainan-class frigate appeared to have been taken from a book and was not one of the photos

that we had taken. Huang Qun said that he appreciated this

explanation, which he thought would help resolve the issue and help cooperation. The Chinese side were investigating. would report their findings to us as soon as possible.

They

Over

CONFIDENTIAL

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