DSR 11C
SECRET
3-
however be little doubt that the Chinese would have great
political difficulty over a statement formally accepting
continued British administration.) The Chinese appear to
favour an agreement of this kind for Hong Kong primarily
because they calculate that this would preserve for them
the major advantages which they derive from the
Territory. In addition, they might see an agreement on
these lines with respect to Hong Kong as setting a useful
example which would increase the pressure on the Taiwan
authorities to respond to their overtures.
SECRET
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