4.

Our consultations with Her Majesty's Government

this issue have been continuous and intensive, and Ministers in

London, including the Prime Minister herself, have emphasised

the importance which they attach to this process of

consultation. Unofficials of the Executive Council were able

to make their views and the views of their Unofficial

colleagues in this Council known directly to British Ministers

when they visited London in July. The Minister of State with

responsibility for Hong Kong affairs, Mr. Richard

discussions with a wide cross section of people

particular

Luce, had

during his

recent visit, recent visit, and during that visit he reaffirmed

once again the firm commitment of the British Government to the

search for a solution. As Members know, I shall be leaving

tonight with the

the Unofficial Members of the Executive Council

for further talks in London with the Prime Minister, with the

Foreign and Commonwealth Secretary, and with other Ministers, as part of this continuing series of discussions.

5.

Honourable Members will understand why in such

circumstances it would be difficult for me to say more on this

issue in this address. It will be to the benefit of all for

the talks to be conducted in an atmosphere of calm and

deliberation. As I have said on many occasions, it was not to be expected, given the complexity and importance of the issues, that they could reach quick results. But we remain determined

to do all within our power to pursue them to a successful

conclusion.

6.

(b)

Tasks for Next Year

On the domestic front, we have made good progress with

major public works projects and we have pursued our long-term social programmes. Total public expenditure on all capital

works this financial year is forecast to be $13.3 billion, an

increase of 13% over the previous year's expenditure which was itself the highest ever. The bulk of this expenditure has been directed towards the development of new towns and upgrading of

our road system. But social programmes have not been

/neglected

:

2

A

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