POINTS TO MAKE [DEFENSIVE]
FLAG C
1. Prime Minister agreed with Chinese leaders last
September to enter talks on the future of Hong Kong
with the common aim of maintaining Hong Kong's
stability and prosperity.
2. Meetings to follow up Prime Minister's visit have
begun and are continuing through diplomatic channels
in Peking. Believe that solution satisfactory to all
three parties concerned will be found. Content of
the talks confidential. No timetable set.
3.
Meanwhile important for all concerned that nothing
is said or done to damage confidence in Hong Kong.
4. The views of the people of Hong Kong will be taken
into account. The Governor is being consulted
throughout and will participate in the talks as and
when necessary.
5. [IF PRESSED ON SOVEREIGNTY]
British and Chinese
positions clear but, given our agreed common objective,
we believe satisfactory arrangements can be worked out.
1A.