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LINE WITH PRESS IN HONG KONG

Hong Kong naturally came up in our bilateral discussions. We agreed on the importance of maintaining stability and confidence.

8.

I am convinced of the seriousness of Chinese assurances to investors in Hong Kong. Meanwhile our relations with China and practical cooperation over Hong Kong are first class.

9.

(If asked whether any agreement with China on 1997 was

sought) I was in China to learn. It was right at this stage to concentrate on getting their views on a range of problems.

10. (If asked and depending on status of Prime Minsiter's visit)

Mrs Thatcher agreed with Chinese leaders in 1979 to keep in touch with the Chinese Government on Hong Kong. Her visit will provide an opportunity to do this.

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