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BILATERAL MEETING BETWEEN SECRETARY OF STATE AND US SECRETARY OF

STATE: 12 FEBRUARY

BRIEF NO

: HONG KONG

OBJECTIVES

1. To make clear that there is no question of Britain reneging on

its commitment to Hong Kong.

To thank Mr Baker for recent US decision to take more Vietnamese

boat people from Hong Kong.

2.

POINTS TO MAKE

(a) Joint Declaration

1. Wrong to suggest, as some commentators have done, that Britain

is reneging on its commitment to Hong Kong.

2.

Remain fully committed to faithful implementation of Joint

Declaration. Working hard to ensure Hong Kong remains thriving,

dynamic society where people wish to live, now and beyond 1997.

3.

Good progress so far but much work remains to be done.

(b) Basic Law

Drafting of Basic Law is progressing well. Have had fruitful behind-the-scenes dialogue with Chinese.

4.

5. Some problems remain. But Chinese officials have repeatedly

stated that draft is open to further amendment.

6.

Provisions on political structure are subject of intense debate

in Hong Kong. Hope Hong Kong people will be able to agree on

consensus formula which commands widest support and confidence.

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