As to the internal affairs of the territory after

14 years, these will be dealt with by the Beijing Govern-

ment and the Hong Kong Special Administrative Region

Government in consultation.

According to well-informed sources, questions

like whether the Urban Council should continue to exist

14 years later and whether the Legislative Council should

be reformed as a Local Council are internal ones and

not the responsibility of the British Government. Except

issues involving principles, which will have to be dealt

with in consultations between Beijing Government and Hong

Kong Special Administrative Region Government, all other

minor issues and the day-to-day administration will be

in the hands of the people of Hong Kong so as to be in

line with the self-rule principle. The Beijing Government

will not send anyone to take up the administration of

Hong Kong.

Persons close to Beijing said, as the Beijing

Government attaches great importance to the position of Hong Kong, it thus appointed Mr. Xu Jiatun, Chairman

of the Jiangsu Provincial People's Congress Standing

Committee to head the Hong Kong branch of the News China

News Agency to maintain a direct link between Hong Kong

and Beijing. This arrangement is also in line with the

position of Hong Kong as a Special Administrative Region

directly under the central government.

Mr. Wang Kuang, previous head of the New China

News Agency, will serve as a senior consultant in Hong

Kong for the Agency.

That Sino-British talks can resume before the

general election in Britain is because of the change

in attitude of the British Government. No more is said

about the validity of the three treaties, as insisted by the British Government previously.

As to when the content of the talks will be announced,

the sources in China said that no announcement was expected

to be made this year as the issues involved are quite complex.

The Government Secretariat made a short statement

that, "As has been stated by the Governor himself, he

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