THE PART PLAYED BY THE CHINESE GOVERNMENT IN THE TALKS

Crawley

Throughout our negotiations with the Chinese Government the

atmosphere has been very good. It is after all a common objective which the two sides are pursuing, namely the maintenace of Hong

Kong's stability and prosperity. We have a common interest in

reaching an agreement which can command confidence within Hong Kong

and among all those who do business in the territory. We have a good

basis for understanding in the excellent bilateral relations between

our two Governments.

Of course there are major points of difference at issue, and we are

fighting as hard as we can in the talks for what we believe to be

right. Much hard negotiation lies ahead. But on both sides there

is a will to arrive at an agreement.

[THE CHINESE ARE DICTATING THE COURSE OF THE NEGOTIATIONS]

Not at all. We are engaged with the Chinese Government in examining

in great detail the arrangements which, after 1997, might secure for

Hong Kong a high degree of autonomy under Chinese sovereignty. This is a matter for genuine discussion, with give and take on both

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15 maintain stabilly + pinpirty Pumpüsching sides. We are working as partners in a common enterprise, not as in Hayhong

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enemies. We are both aware that Hong Kong's fundamental and

long-term interests are at issue.

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[CHINESE REACTIONS TO THE UNVEILING' STATEMENT]

I understand that the Director of the New China News Agency in Hong

Kong described the Foreign and Commonwealth Secretary's statement of

20 April as 'pragmatic and friendly'. These two adjectives well sum up the approach of both sides to the entire negotiation.

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