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proposals. Well received.
11.
November Round. Heavier going.
Chinese saw progress in terms
of agreement on principles. We explained not aiming at co-administration.
Must get
12.
December Round. Chinese now willing to discuss detail. Some
measure of agreement but much exploration still necessary.
binding assurances of continuity.
13. Sir P Cradock's farewell calls. Discussed Hong Kong with
Premier Zhao and others Chinese took generally positive line. Some signs of flexibility. Zhao confident agreement would be reached.
14. Hong Kong opinion and acceptability. In close touch. Taken
into account. Role of EXCO central. Their concern to see agreement which genuinely sustains confidence. EXCO Unofficials visited again 13-17 January. Comprehensive review of talks. Close identity of
views on matters involved.
15.
Chinese Propaganda. Now less strident; aims to make Hong Kong people and international opinion resigned to Chinese plans. Seeks to reassure that they will work. Recent spate: Premier Zhao's
statements in United States and Canada. Speeches and interviews in Hong Kong/China by prominent Chinese.
16. September 1984 deadline. Does not explicitly rule out
continuation of talks.
17. Chinese 'reconsideration' of 1997 timing for resumption of
sovereignty. Designed to pressurise us. Common Sino-British
interest in maintenance of stability/prosperity.
&
18. Hong Kong dollar and stock market. Affected by Chinese propaganda. Measures to stabilise Hong Kong dollar are working well. Hong Kong emerging strongly from recession. Export led recovery. GDP growth probably met 6% target in 1983.
19. Parliamentary interest. Delicacy of issue. Important nothing
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