Both we and the Chinese Government have the strongest possible motives for reaching such an agreement.

We are entering the discussions on the basis of firmness and

flexibility: we are firm on our commitment to maintain the

well-being and way of life of Hong Kong. We are flexible on the means of achieving this. The important point is that continuity should be effectively guaranteed.

But since the Chinese have revealed their plan publicly, should not

HMG tell Hong Kong their ideas in more detail?

We have of course seen a number of reports of remarks by Chinese

public figures. Since many of these have been made to Hong Kong people, it is most important that Hong Kong people should make their

frank views, known, not just to us but also to the Chinese. One of the main purposes of my visit here is to listen to those views.

The Prime Minister agreed with the Chinese leader that the talks

should aim at the maintenance of stability and prosperity in Hong

Kong. We are sure the Chinese share our view that nothing should be

done to damage confidence in the territory. So far as we are

concerned future arrangements must be worked out closely and

responsibly between the two Governments in the interests of Hong

The conference table is the place for an exchange of views.

Kong.

Action to Prevent Erosion of Confidence in Hong Kong

The Prime Minister has made it clear that Her Majesty's Government

is committed to the people of Hong Kong. I know that it is the intention of the Hong Kong Government to continue to invest

vigorously in the future of Hong Kong and its people, and in the

development of the territory.

Involvement of People of Hong Kong

The process of consultation takes place at many levels, official and unofficial, formal and informal. An important stage in it was the visit to London in July by the Governor and the Unofficial Members

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