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at the Foreign and Commonwealth Office. The group is working full time

between rounds of formal talks. Both working group teams are

responsible to the Chairman of their respective Government delegations

who remain responsible for the overall conduct of the negotiations.

7. Mr Luce visited Hong Kong from 12-14 July for regular

9

consultations. He had meetins with the Executive and Legislative Council

of. Hong Kong as well as business and community representatives. The

Secretary of State will visit Hong Kong and Peking at the end of July.

In Peking he will continue his series of discussions with the Chinese

leaders on all aspects of Hong Kong's future. The Secretary of State

will visit Hong Kong on his way to and from Peking. This will give him

an opportunity to listen to the views of the people of Hong Kong. He

will meet the Governor and members of the Executive and Legislative

Councils, and other representatives of the Hong Kong community.

A Green Paper on the future development of representative Government

will be published on 18 July in Hong Kong. It contains proposals for

indirect elections to the Executive and Legislative Councils of Hong

Kong. Indirect elections are proposed at this stage, rather than

direct elections, because of the essential need to preserve stability

and harmony in the community at this crucial time.

9.

The reply has been agreed with Hong Kong and Peking.

Hong Kong Department

17 July 1984

cc: Sir P Cradock

FED

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