b.

c.

d.

CONFIDENTIAL

and prosperity of Hong Kong; meetings have since begun. No solution acceptable to the people of Hong Kong and

the British Parliament can be ruled out. Governor

of Hong Kong consulted throughout.

Important to maintain confidence in Hong Kong: it is the

British connection which currently guarantees its

stability and prosperity.

On sovereignty both British and Chinese positions are

clear but, given our agreed common objective, we believe

that satisfactory arrangements can be worked out.

Chinese have been conducting propaganda campaign.

We are keen to avoid negotiation through the press.

It is the talks that count.

CONFIDENTIAL

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