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(d) HMG's Position on Hong Kong's future

It was unhelpful to talk publicly about this. It did no service to the people of Hong Kong.

(e) Was it important for Hong Kong public opinion to be

demonstrated clearly for all to see?

Yes. He had been very impressed by the variety of machinery through which public opinion was continuously made known.

(f) Duration of Sino-British Talks

It was counter productive to set deadlines but we wore proceeding with the talks as quickly as possible.

(g) Sir P Cradock's new appointments

Delighted that he has accepted them.

Indicates:

(i) Important element of continuity in the talks; (ii) high regard with which HMG regard Sir P Cradock.

(h) Contradictions to HMG's stated 'commitment' to Hong Kong

ie passport questions and student fees

British nationality Act (1981) must be seen in the context of rationalising previously existing UK legislation. Glad that one of Hong Kong's worries (page 5 passport endorsements) had been resolved to its satisfaction. Ditto with regard to student fees: joint funding shceme agreed for Hong Kong students.

(i) Announcement on Sir P Cradock's successor as HMA Peking

i

An announcement would be made as soon as possible.

(j) Was the British Government's objective to preserve its

presence in Hong Kong after 1997?

We

Inappropriate to reveal details of the negotiations. have a strong commitment to the people of Hong Kong. So do the Hong Kong Government and the British investors.

(k) Is local rule, ie self-government possible in Hong Kong and

beneficial to Hong Kong society?

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At community level it is both possible and effective. Hong Kong's special position makes it difficult to have elections at a broader level.

(1) British silence on the talks damaging to Hong Kong's

confidence

As and when we feel that we can say something helpful we will do so. But journalists should not seek to dramatise the situation by interpreting every economic event in terms of the talks.

(m) Is HMG committed to preserving Hong Kong's basic rights

to freedom as they now exist?

We have a strong commitment to a solution acceptable to Britain, China and the people of Hong Kong. 'Acceptable' implies not only the retention but the continuing construction of a stable and prosperous society.

(n) Reports of a Chinese deadline for the talks

This has been publicly reported. But we are accountable for our view which is that deadlines are not helpful.

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