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policies, with slower growth and a renewed emphasis on central planning. The Chinese economy therefore seemed likely to take a step backward. The authorities were doing their best to emphasise a return to normality. The United Kingdom had, both individually and together with other major international partners, condemned very strongly the continuing repression while avoiding a complete cut-off in contacts and lines of Communication with China. The situation in China would no doubt discussed at the forthcoming European Council in Madrid and Economic Summit in Paris, and language for public statements pth occasions was being prepared. It was to be expected applications for political asylum by Chinese citizens would

ONFIDENTIAL

Hong Kong

Previous Reference

CC(89) 21.3

Bulgaria

an

THE FOREIN AND COMMONWEALTH SECRETARY said that the financial system in

ng continued to bear up well despite the recent blow to pulic confidence there. Senior members of the Executive

gislative Councils, Dame Lydia Dunn and Mr Allen Lee, werently in London lobbying on the nationality issue and would being the Prime Minister and himself on 23 June. In the debate on 21 June in the House of Lords the Opposition had not issue with the Government's line over British passports

ng Kong residents. But it remained necessary to do some cency planning about how to cope with the worst case scenarioeents were to precipitate a massive flight of Hong Kong resident from the Crown Colony.

ONFIDEN

NTIA

THE FOREIGN AND COMMONWEALTH SECARY said that the Bulgarian authorities were stepping up the treatment of the Turkish minority in Bulgaria, of whom se 50,000 had now fled the country. The United Kingdom had made a strong statement pressing Bulgaria to desist and invoking the procedures on human rights flowing from the Helsinki Agreement The Bulgarian leader, Mr Todor Zhivkov, had criticised heritish Ambassador for the United Kingdom Government's strong ip the matter.

Greece

THE FOREIGN AND COMMONWEALTH SECRETARY said that the recent general election in Greece there had been a substant toward the New Democracy party which had won about of the vote compared with 41 per cent in 1985, where ruling party PASOK's share of the vote had fallen from per cent. The Communists retained 13 per cent. seats New Democracy were six short of an overall majority

Thus whb

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8

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swing

cent

the

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