CONFIDENTIAL
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and that while we should try hard to reach agreement, it would not be in Hong Kong's interest to settle for a deal at any price. The Governor's letter explains the crucial importance of a credible legislature in upholding the rule of law in Hong Kong.
The next few weeks will therefore be crucial in these negotiations. Unless we are able to reach at least an interim agreement by early December, we will then need anyway for practical reasons to introduce legislation on the more urgent electoral issues. If that becomes necessary, we shall want to continue discussion with the Chinese side on the remaining issues, and to cooperate with them on all other aspects of the transfer of sovereignty.
The Prime Minister would be grateful for anything the Chancellor is able to do during his visit next week to encourage the Chinese to take a constructive approach.
Herrn. Joachim Bitterlich
RODERIC LYNE
CONFIDENTIAL
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