objective agreed by the Prime Minister and Chairman Deng Xiaoping

last year.

Progress has been steady, if unspectacular. But then we

have never pretended that the talks would be easy, nor that they

would be concluded quickly. As you will all know better than I, the talks cover areas of real personal significance to a great many

people. We attach the greatest importance to ensuring that Hong

Kong's interests are properly covered.

This leads me on to what I consider to be one of the most important

developments over the last year. I have been struck by the balanced

and constructive way in which people in Hong Kong are approaching the problem. It is important that everyone concerned should make their views known. It is right that they should voice their worries but right too that they should show confidence that there

will be a genuine future for every man and woman who contributes

to the success of the Territory. This confidence will I know be

justified. The combined interests of Hong Kong, Britain and China all point in that direction.

Well I have talked enough for the moment. I shall be delighted to

answer your questions.

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