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Government,

are committed to the full implementation of the

Joint Declaration. The remark hardly seems to accord with

Premier Zhao's statement to the Prime Minister in New York on 24

October that the Hong Kong Agreement was working even better than

the Chinese had expected.

4.

Ministers would like Wilson to repeat the above points

during the course of JLG discussion.

With reference to para 3(H) of Hong Kong telno 2613,

Ministers hope that Wilson can also point out, in the course of

JLG discussion, that a system of "consultation" for constituting

the SAR legislature would in fact run contrary to the provision

of the Joint Declaration which states that "the legislature of

the Hong Kong SAR shall be constituted by elections."

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Like Hong Kong, we agree with your TUR.

23 HONG KONG AGREEMENT

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