CONFIDENTIAL

}

3

DSR 11C

5.

Finally, I think there is some evidence that

political considerations, including the very good

relations that exist between Hong Kong and China

(particularly Guangdong province) and between Britain

and China, make our prospects of winning this contract

rather greater than GEC appear to believe. We should

very much regret their withdrawal.

6.

I am copying this letter to Kenneth Baker at the

Department of Industry.

Page 120Page 121

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