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Clinton sets out his policy on China at greater length. He emphasises that he does not wish to isolate China but wants to work for a peaceful transition to democracy and free markets. have spent a great deal of time explaining to his advisers from McCurdy and Lake downwards the serious consequences for Hong Kong of revoking MFN for China.

Clinton suggests that the Democracy Corps should provide teams of experienced Americans at local centres throughout the former Soviet Union to offer help to grass roots leaders.

J N Powell

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CC:

Robert Cooper Esq, Planning Staff, FCO Patrick Holdich Esq, RAD, FCO

David Richmond Esq, NENAD, FCO

Colin Jennings Esq, CSAD, FCO

Alistair MacLean Esq, EAD, FCO

Charles Crawford Esq, Eastern Dept, FCO Warwick Morris Esq, FED, FCO

Nigel Cox Esq, Hong Kong Dept, FCO PS

Mr Meyer

Mr Marsden

Mr Ralph

Mr Torry

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