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CONFIDENTIAL

HONG KONG

We have been pressing the Chinese for three weeks to confirm

arrangements for talks between us on Hong Kong's electoral

issues.

The Chinese are still dragging their feet. Governor delayed publication of his legislation with the aim of getting the

talks off to the best possible start.

But we have told the Chinese that we cannot delay

indefinitely, given the need to have legislation in place

well in advance of the next round of elections.

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Governor has concluded that if we cannot announce talks

tomorrow, he will need to make a statement in the

Legislative Council explaining the position reached.

From this it will be obvious that the Chinese have been

but we hope not so much so that fills wd. becore amonitle. dilatory. They may react adversely. But we cannot afford to give the impression that we and the Governor have lost the initiative in Hong Kong. Unless the Chinese are prepared to hold talks soon, the legislative process will need to begin.

CONFIDENTIAL

Hong Kong

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