TNAG-0851-FCO40-1061-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 92

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6.

Remarks such as Hua's at recent press conference helpful,

but cannot solve this practical problem. If proposed solution

not acceptable, another will have to be found fairly soon.

Otherwise Hong Kong will not be able to play its part in

China's modernisation programme.

7. In the meantime it is, of course, important to maintain

confidentiality about these exchanges.

Official Chinese Representation in Hong Kong (if raised)

8. In British view official representation still not

appropriate. Might be misunderstood and therefore damaging

to business confidence.

9. Hong Kong Government ready to help find solutions to any

practical problems that cannot be solved under present informal

arrangements.

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