F. RELATIONS WITH CHINA?

In no one's interests, least of all Hong Kong

for differences to be aired publicly. We are keen to return to rational discussion through private exchanges. Fact is there are many issues related to our joint responsibility for Hong Kong which

must be discussed.

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Visit to Peking by Sir P Cradock and Govenor of Hong Kong are part of this process.

WHY WAS SIR P CRADOCK'S VISIT SECRET?

Visited Peking in December for discussions with senior Chinese officials. Part of ongoing dialogue

at various levels over Hong Kong.

No announcement because that is not our practice for visits by officials.

BREACH OF MADRID DECLARATION?

No. Sir P Cradock is an official, not a

Minister.

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