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(Questions on alleged specific difficulties/deviations from Joint Declaration: e.y. jurisdiction of SAR courts, amendment/ interpretation of Basic Law, etc.)

7.

Discussion on all these matters is continuing within BLDC. Not appropriate for me to comment.

8.

(Press reports on specific ideas put to Chinese by British side).

There is continuing exchange of views between British and Chinese sides, through various channels, on Hong Kong issues of mutual interest. Covers wide range of subjects, including future government structure in Hong Kong and how to achieve smooth transition in 1997. You would not expect me to comment on details of such confidential exchanges [or on speculative press reports].

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