CONFIDENTIAL
Implementation of Joint Declaration on Hong Kong proceeding well. Both sides fully committed to making it work, and acting prudently and cautiously to this end. Certain that good progress already achieved in Joint Liaison Group will be continued at next month's meeting.
Iran/Iraq
UK and China also share important international responsibilities as members of the UN Security Council. Concerned by increased tension in the Gulf. Installation
of Iranian Silkworm missiles a negative development. Hope no more missiles will be supplied to Iran.
Our policy is well-known and strictly impartial - will not sell any defence-related equipment to Iran or Iraq which could significantly enhance either side's capability to prolong or exacerbate the conflict.
Defensive
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Representative government in Hong Kong
we
Proceeding cautiously and prudently in our review of government system in Hong Kong. As part of review Hong Kong government has published Green paper late May (Chinese Government received advance copy). We have no preconceived views on outcome of review. Look forward to continuing our exchange of views with Chinese Government
as review progresses.
FC2ABX
CONFIDENTIAL