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It has been my firmly and consistently held view, a view strengthened by my visit to Hong Kong and particularly by my discussions with Premier Xhao in Peking in February this year, that the discussions between the United Kingdom and China would result in an amicable and sensible agreement which would allow Hong Kong to continue to function in conditions acceptable to all the parties.

Australia has important interests in Hong Kong and in Hong Kong's continuing to play a positive role in the development of our region. The agreement that has now been reached, and the arrangements made for continuing cooperation between the parties involved in Hong Kong's future, will make an important contribution to the political stability of the Western Pacific region as a whole."

Best wishes

Bob Hawke

Ends.

işi

R.H. Robertson

The Rt. Hon. Margaret Thatcher, MP

Prime Minister

10 Downing Street

LONDON SWl

CKYBINDIN

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