TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 246

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proportion would no doubt pass direct between the two countries but indirect trade via Hong Kong

would also increase. Even in the unlikely event

of indirect trade declining, the effect on Hong Kong's economy would be minimal since the quantities

involved are so small.

INTERNAL DEVELOPMENTS IN CHINA

3. In view of China's obvious sensitivity about the recent leadership crisis, the Secretary of State may wish to take the line that it is not for us to speculate on China's internal problems.

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