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said to affect Hong Kong confidence and/or complicate negotiators'

task.

DEFENSIVE

20. Prime Minister's messages to Premier Zhao. Two of these.

March and October. Designed to surmount obstacle of Chinese insistence on sovereignty premise. Gave nothing away. Explained sovereignty a matter for Parliament. October message stated our willingness to discuss without prejudice Chinese proposals for Hong Kong. Talks now proceding on this basis. Parliament will pronounce on any final package.

21. Sunday Times 'articles. Wrong and unhelpful to comment publicly on press speculation. It is final outcome which matters.

Hong Kong Department

23 January 1984

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