4

lo

in the Mainland, we have a wide range of official and institutional channels for exchanges of ideas on matters

These channels have functioned

of

common interest.

well. They have helped in developing the sort of mutual understanding which is so important in solving practical problems as they arise.

6.

I have myself recently returned from Peking. I found that visit useful as an opportunity to explain some of our concerns to senior Chinese officials dealing with Hong Kong affairs and to learn about theirs. I am sure that this sort of dialogue helps to promote a relationship of co-operation and mutual understanding which will benefit both sides. I look forward to

continuing this

this dialogue, and hope to make a further visit to Peking before the end of the year.

7.

(b) Political Relationship with China

The single most important aspect

aspect of our relationship with China is of course the implementation of the Joint Declaration. This continues to make good

progress.

There should be no doubt about the determination of both sides to implement fully the terms of the agreement.

/(i) Joint

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