HK 2 APQ

CONFIDENTIAL

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Brief No. 5

SECRETARY OF STATE'S VISIT TO THAILAND (20-22 APRIL),

AUSTRALIA (22-25 APRIL) AND NEW ZEALAND (25-27 APRIL)

HONG KONG

POINTS TO MAKE

IMPLEMENTATION OF JOINT DECLARATION

1.

Proceeding well. Both sides fully committed to making it

work. Joint Liaison Group had its sixth meeting in Hong Kong from

17-20 March and achieved good results. Continuing international support important.

ASAS

2.

Hope to reach agreement in the near future on separate Hong Kong/[Australia] [New Zealand] [Thailand] ASA.

Establishment of

separate ASAS is in the interests of Hong Kong and its aviation

partners since it will provide a greater degree of confidence about

the continuation of services after 30 June 1997.

REPRESENTATIVE GOVERNMENT

3.

British and Hong Kong Governments are acting prudently and

cautiously in developing representative system of government in Hong Kong. Must take the views of Hong Kong people fully into account when taking decisions on these important matters. Important also

to make sure that we are Chinese Government are aware of each

other's intentions and concerns.

[Introduction of direct elections]

4.

This will be examined in context of HKG's review later this

year of the territory's political structure. No preconceived ideas

on outcome of that review. Review will be a genuine effort to seek

and assess views of Hong Kong people on this important issue. Would

be wrong for me to try to prejudge outcome at this stage.

CONFIDENTIAL

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