BACKGROUND NOTES

1. The nineteenth round of talks is taking place on 24 and 25 July.

The agreed press statement after the round is likely to again

described the talks as "useful and constructive".

2. The Secretary of State will visit Hong Kong from 26 to 27 July

and 31 July to 1 August. This will enable him to listen to the

V iews of the people of Hong Kong. He will meet the Governor and

members of the Executive and Legislative Councils and other

representatives of the Hong Kong Community.

3.

The Secretary of State will visit Peking from 27 to 31 July. He

will continue his discussions with the Chinese Foreign Minister and

other Chinese leaders on all aspects of Hong Kong's future.

4.

On 18 July, in answer to two written PQ's, the Secretary of

State introduced

a Hong Kong Government green paper on

constitutional development in Hong Kong and outlined our proposals

for testing the acceptability of an agreement on the territory's

future. Copy of the statements are attached.

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