28-OCT-1992 17:30

A.G.'S CHAMBERS

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Annex C

Message from

Secretary of State for Foreign and Commonwealth Affairs to Chinese Minister of Foreign Affairs (31 January 1998)

Thank you for your message of 25 January, which I have studied carefully. I entirely share your view that the differences between our two sides. can be resolved so Long as

we approach them in a spirit of mutual accommodation with the aim of maintaining the stability and prosperity of Hong Kong. It is my sincere wish to reach an early understanding with you оп the most appropriate

structure for Hong Kong before and after 1997. am grateful for the efforts you have made to meet our

political

concerns.

2.

I have given the matter intense thought since receiving your reply. I have also examined carefully the reports which I have received on the reactions in Hong Kong to the proposals which emerged from the recent meeting of the Political Structure Special Group of the Basic Law. Drafting Committee in Guangzhou.

3.

It is clear to

as it will be to the Chinese

side, that the outcome of the Basic Law Drafting Committee Special Group meeting caused

Kong.

real disappointment in Hong

4.

from

There has been a

particularly adverse reaction

moderate groups in the Territory who have been working hard to find an acceptable consensus. We therefore face the prospect that unless significant changes are made, the provisions on the political structure in the Basic Law will not be welcomed by responsible opinion in Hong Kong. This situation would pose serious political problems for both our Governments. The Basic Law will have a major impact on how Hong Kong people view their future. The political provisions will be of key importance in this The effect on investor confidence, locally and overseas, if these provisions were to be widely criticised would be serious.

structure

regard.

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