9. The Chinese would not agree to the Governor of
Hong Kong, Sir Edward Youde, taking part as a representative
in the talks because Hong Kong could not have an independent
status in Sino/British negotiations. In the process of the Sino/British talks on Hong Kong, the sources said that China
wished to protect the interests of Hong Kong people. But the present delays were principally caused by obstacles
raised by the British. Although there was at present a pause in talks, the Chinese side had invited a series of Hong Kong people from all circles to present their views. After hearing the views of Hong Kong people, the Chinese
side would set out arrangements for taking care of Hong
Kong peoples' interests. The sources pointed out that
the British side had at first under-estimated the Chinese
Government's principled stand on the Hong Kong question by
believing that China was only using its position on
sovereignty as a bargaining counter. This accounted for the proposals put forward in mid-October last year. The
Chinese side considers that a satisfactory outcome to the
talks is possible but China would not be a "demandeur" even though an early agreement would be in the interests of Hong Kong people. Finally, the sources emphasised that "China is not Argentina, Hong Kong is not the Falklands". This means that on the question of Hong Kong's future, China has a position which is both reasonable and backed up by strength.