3.

described by both sides as useful and constructive.

The eleventh will take

place on 26/27 March. In each round the friendship which exists between

China and Britain has been a real plus point. It has meant that the talks

have gone ahead in a useful and constructive manner. But even so the risk

to

] [G

[

of mutual misunderstanding persists. Great patience is going to be needed by both sides so that we reach an agreement which is satisfactory to all

involved. Our determination to press ahead and to reach that goal is

undiminished. I can give this assurance: we are receptive to any proposals

for Hong Kong's future which would ensure continuing stability and

prosperity and be acceptable to Parliament, the Chinese Government and the

people of Hong Kong.

11. We are getting on with the talks as quickly as we can, but cannot

predict precisely how long they will take. We are making a particular

point of keeping in close touch with Hong Kong opinion, notably through the

Governor and through his Executive Council. Mr Luce paid another very

useful visit to the territory between 25 and 28 February, when he met again

representatives of a wide range of local opinion. These, amongst others,

5

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