of tension and violence in the region. It will take

time for confidence to be established but we

encouraged that a start has been made.

My hope is that in time a decline in violence and

instability in the region will persuade the South.

African government of the need for more enlightened

policies at home. But until that happens, we shall

maintain our firm stance against South Africa's racial

policies and the oppression associated with them. We

have expressed our views clearly and the South African

Government is well aware of what we think. We deplore

the enforced removal of people from their land and the

distress this causes. And we have made clear our wish

to see all political prisoners in South Africa

released.

[Response to any points raised on issues in the Third

World and on Falklands.]

Hong Kong

Finally, I would like to bring your Lordships up to

date on the negotiations on the future of Hong Kong.

Our confidential talks with the Chinese Government

are continuing through diplomatic channels in Peking.

Nine rounds have now been held in the second, more

detailed, phase of the talks which began last July.

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