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on the part of the Chinese (though they might want to say something unofficially), nor any change in their official position; moreover it would allow them to keep the action limited to this field if they so wished. I heartily agree with Mr Cradock that it would be in HMG's interest to approach the future of Hong Kong step-by-step rather than on a broad front. However once we have taken an initiative we would not know where the Chinese response would take us they might have quite different ideas. I therefore suggest that if and when we act we should do so with the utmost discretion, and in a way, and through channels, that will leave us plenty of room for flexibility if some quite different Chinese counter-proposals are made.
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I am sending copies of this letter to Percy Cradock and Richard Samuel.
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