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could not be solved in this session, but there was agreement to enter into further talks through diplomatic channels with a common aim of maintaining prosperity and stability. Mr. Deng had made his position on sovereignty known. But she

was not free to abrogate treaties without reference to her

Cabinet and Parliament.

Mr. Deng Xiaoping suggested that we should add to the

proposed formula a statement to the effect that the leaders of both countries had clearly expressed their respective positions on the future of Hong Kong.

After some further discussion, it was agreed to issue the following statement:-

"Today the leaders of both countries held far

reaching talks in a friendly atmosphere on the future of Hong Kong. Both leaders made clear their respective positions on this subject. They

agreed to enter talks through diplomatic channels following the visit with the common aim of maintaining the stability and prosperity of Hong Kong.'

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The Prime Minister commented to the effect that diplomatic

channels might be used to agree upon a framework for the talks. If either side wanted to conduct talks through special emissaries these can be brought in. Mr. Deng Xiaoping agreed.

The discussion ended at 1245.

A. J.C.

24 September 1982

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