CONFIDENTIAL

We will try to persuade the Chinese to go on discussing the more

contentious issues. But it is likely that they will accuse us of sabotaging the talks and will break them off. Things could

therefore come to a head next week. These are not matters which

the PUS will wish to discuss either with Mr Keswick alone, or at

the lunch. (But we keep Sir C Powell broadly informed of developments in the talks).

NC G Whitney

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CONFIDENTIAL

SLM

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