CONFIDENTIAL
transition. If we had misread China's position, was the CRC
suggesting that we should change that policy?
4.
Selina Chow said that, at their meeting with the Governor
on 6 January, he had suggested that discussions with China
could continue on the basis of the Joint Declaration and the
Basic Law and the 1990 exchanges. The CRC did not understand,
if both sides were saying they could continue on that basis
and the Governor's proposals were flexible, why discussions
were not now taking place. Mr Goodlad confirmed that the 1990
exchanges did not constitute an agreement He could not go
beyond what the Prime Minister had said on the question of
discussions with China. The way was open from our side for
discussions to continue. He was grateful to Mr Lee and his
CRC colleagues for taking the trouble to come to London.
was very helpful to have this very frank discussion in
private. There had always been differences with China in the
past but we had resolved them through cooperation. This remained our policy. (Mr Goodlad handed over a copy of the
Secretary of State's remarks to the press of 19 January)
It
Ps
Distribution
PS/Mr Goodlad
Sir J Coles
Mr Hum
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FED
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Mr Bideham, Spécial Advisers
A
record.lee.MORRIS
JEB
CONFIDENTIAL
By Fax:
PS/GH Hong Kong
Mr Cox, Peking