ROM: Secretary of State

TO:

The Rt Hon Lord Barber

15 Montpelier Square

London SW7 1JU

Thank you for your letter of 18 December, with its

interesting enclosure.

I was grateful for the account of your meeting with

Li Peng.

I appreciate your readiness to press the Chinese

leadership on the need to address the problem of confidence

which they have triggered in Hong Kong.

This is a message which we have put across many times ourselves: it can only

help to have had it reinforced.

I was interested to hear that you will also be visiting

South Africa in February. There have been a number of encouraging developments there since the Eminent Persons' Group visited in 1986, and more particularly since the accession of Mr de Klerk's government last year. The prospects for an opening of negotiations on South Africa's

constitutional future are better now than for some time.

But there remain considerable obstacles. For our part, we

believe that the negotiating concept put forward by the Eminent Persons' Group remains the most feasible basis on which to get negotiations under way. We are continuing to commend it to all parties in the dispute, including the

South African Government and the ANC. I am sure it would be

useful for Pik Botha to hear the same message from you.

I understand that you will be seeing Sir Robin Renwick

for lunch before your meeting with Pik Botha on 8 February. Sir Robin will be able to bring you fully up to date with developments. We would also be happy to offer you a briefing in the FCO before you leave, if you would find that

useful. You may like to contact the Head of Southern

African Department, Richard Dales (01-270-2551).

DIGAAM/1 PS3AAS

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