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preferential treatment nor is any restriction imposed on the

grounds of nationality. Where British firms have won contracts they have done so against stiff competition. Many

so-called British firms, particularly consultants, have been established in Hong Kong for many years.

(C). SINO-BRITISH RELATIONS

WHAT IS THE PRESENT STATE OF RELATIONS WITH CHINA?

Want a businesslike and effective working relationship with

China. As Governor has said, need to overcome the misunderstanding and mistrust that have bedevilled the

relationship in the past.

That said, and setting aside areas, like airport, where we have not yet reached complete agreement, relations with China at all levels are greatly improved from where we were a couple of years ago. And of course Hong Kong remains the single most important issue in our bilateral relations.

(if raised)

RATE OF PROGRESS of JLG

www.

We still want to see a faster rate of progress in the

Sino-British Joint Liaison Group. I raised this when I met

the Chinese Foreign Minister last March. Nevertheless the JLG has made some good progress and has reached important

agreements.

M

DEFENCE LANDS

Negotiations continue with the Chinese on Defence Lands in the Joint Liaison Group. Details must remain confidential.

(D). ROLE OF BRITISH EMBASSY IN PEKING

TO WHAT EXTENT CAN HONG KONG CITIZENS EXPECT THE BRITISH

EMBASSY TO PROVIDE PROTECTION AND REPRESENTATION WHILE

THEY ARE IN CHINA?

Holders of BDTC or BN (0) passports enjoy the usual access to

sos.omelco.PR

SLM

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