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CONFIDENTIAL

PRIME MINISTER'S VISIT TO WASHINGTON, 23-25 FEBRUARY

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POINTS TO MAKE (with President and Administration only)

Hong Kong

Welcome your support for Chris Patten's democracy proposals. Touched on this when we spoke in December. Hope that you will

be able to find time to see Mr Patten when he visits the US (if

possible April/May).

Chinese have given us a tough time, and have unsettled the business community. Encouraging that they have now agreed to discuss the electoral issues with us. But we remain far apart on substance; will not be easy to reach an understanding]

- Our bottom line is that the elections must be open, fair and

acceptable to the people of Hong Kong. We and Mr Patten have always said we are open to other ideas and that it will be for the Legislative Council in Hong Kong to make a final decision.

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China

- We and EC partners continue to see sustained pressure as the best method of making progress over human rights in China.

Report of Lord Howe's Mission, expected shortly, should help move this process forward.

- At the request of the US, EC is sponsoring UN Human Rights Commission resolution on China. Chinese lobbying against resolution, but useful way of airing concern and applying

pressure.

Welcome US views and regional implications of China's military

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CONFIDENTIAL

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