(Defensive) Do not think it sensible to press the issue now, just before the elections. Better to give the new

LegCo time to settle in.

-

(If pressed) I told Premier Li Peng that in due course

we would want to discuss a range of issues concerning the

1995 LegCo elections.

Chinese "recognition" of OMELCO (Defensive) We discussed this in Peking, urging the Chinese to improve

contacts.

VIETNAMESE MIGRANTS

Appreciate the way Hong Kong has continued to bear an

increasingly difficult burden. Will have (Have had) a full

discussion with the Governor of measures to ensure

repatriation of Vietnamese migrants under the terms of the

Comprehensive Plan of Action.

MFN

Have been personally involved: several face-to-face and

telephone discussions with President Bush. We have also

worked hard with US Congress. I am very pleased for Hong

Kong that MFN now likely to be renewed. Fully appreciate the impact loss of MFN would have on Hong Kong.

But this is not the end of the road. Need to continue

to work together, and with China, in the months and years

ahead.

CIVIL SERVICE

Hong Kong well served by its civil service: efficient

and well-motivated.

-

Know that there are some morale problems with civil

ARRAFB/2

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