CONFIDENTIAL

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Because of the holiday period, it may be necessary to take

special steps to clear our proposals on financing and the hardware

package with colleagues since, if a further round of talks is to

take place before your visit to Peking on 22 Sepetmber, these

will have to be considered towards the end of August or early

Sepember.

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I am copying this minute to Francis Pym, Geoffrey Howe,

Arthur Cockfield and Nigel Lawson.

Continuation Sheet No. 5

File No.

m SS/29A Page 135

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