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OUT TELEGRAM (CONT)

Classification and Caveats

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2 WILL FINAL AGREEMENT BE DISCUSSED/TABLED DURING VISIT?

34.

Inappropriate to divulge talks. Both sides have agreed on

4 need for confidentiality. Must respect.

5 ANY CRISIS/DEADLOCK/IMPENDING BREAKDOWN IN TALKS?

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65. No.

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Successive rounds of talks described by both sides as

quote useful and constructive unquote. Such terms clearly not descriptive of crisis/deadlock. Talks proceeding in friendly atmosphere. Progress being made.

10 HONG KONG VISIT

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6. Looking forward to this. Excellent opportunity to get first-hand view of Hong Kong and listen to a wide range of opinion there. Attach great importance to keeping in close personal touch. Ministerial visits play important part in this

process.

16 LEGCO DEBATE

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7.

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It is natural and understandable that the Unofficial members

should have wished to have such a debate at this time. The debate

was a procedural one. What the Unofficial members were seeking, through the motion, was simply an opportunity to discuss any proposals for the future of Hong Kong, in the Council before any final agreement is reached. That is a reasonable wish. Although it is too early to say precisely how Hong Kong opinion will be consulted on any arrangements proposed for the future, many bodies 25 including LEGCO can be expected to make their views known.

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DESIRE OF HONG KONG PEOPLE FOR MORE INFORMATION ABOUT THE TALKS

8. We fully understand the desire of Hong Kong people to have more information about the talks. But this must be balanced

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against our conviction that progress can best be made in confid-

ential negotiations. To the extent that we can do so without prejudicing the confidentiality upon which the British and

32 Chinese governments are agreed, we seek to explain to Parliament and to Hong Kong opinion what our general objectives are. In due course, there will of course be an opportunity for Hong Kong

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