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valuable and hoped that Britain and China could continue

work closely together on international issues as well as

on Hong Kong.

The Prime Minister was glad that senior British

businessmen such as Lord Young were visiting China. He would encourage others to do so. He hoped that Li Peng would encourage Chinese organisations to give business to British firms, many of which are strong in Chinese priority areas.

It would be helpful if Lord Young could also touch

on recent elections to the Legislative Council in Hong

Kong in his talks with the Chinese leaders. He might

say:-

The Chinese, like us, have to deal with the

realities of the elections. Although the turnout was

low, the liberals won most of the seats.

We hope the Chinese will keep open a dialogue with

the newly elected members of LegCo and develop a

cooperative rather than confrontational relationship with

them.

Within China there has continued to be human rights

activity since the Prime Minister's visit. The Chinese

remain unapologetic about their record and continue to

warn against "peace ful evolution" but remain ready to

discuss human rights with foreign visitors, the latest

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