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7. RELATIONS WITH CHINA?

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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.

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.

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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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