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signed it. There was no question of gestures to the gallery. There were no circumstances in which we were not prepared to talk. Cooperative relations with China were in the interests of Hong Kong.
Mr Lee said he was very encouraged by what the Prime Minister had said. Nonetheless there seemed to be a deadlock. How were we going to break that deadlock?
Mr Wong-fat asked what would happen if there was no solution to the impasse. How would HMG ensure a smooth transition?
The Prime Minister said that he did not accept the premise on which the question was based. It would be very unwise to assume that we could not reach a satisfactory conclusion. As Prime Minister he faced difficulties every day. At any one moment of difference it was not possible to see what the nature of the resolution would be. But there always was a resolution. He did not believe that in this case the impasse would continue to the detriment of Hong Kong.
Mr Young said that if the impasse was not solved, then business would be affected. He should know, being a businessman who had lived in Britain and gone back to China 24 years ago. How would the Prime Minister resume the dialogue with the Chinese? The Prime Minister commented that this was not just a matter for us. We had had a whole series of difficulties in the past but had got through and the Prime Minister was confident that we would get through the present difficulties. The future of Hong Kong was important to both governments. There was an implication in what had been said that the Chinese could make no movement because of loss of face, but agreements had been reached in the past.
The Foreign Secretary said the discussion about Mr Patten's proposals was going on in Hong Kong. We would not cut that short. Additional dialogue with China was perfectly possible. It should not be beyond the wit of man to find ways of discussing these matters. He knew there might be a feeling that we were trying to internationalise the problem. That was not so, though Hong Kong was an international city and people outside Hong Kong were interested. We would continue to operate within the agreements reached with the Chinese.
Mr Ho said that the Governor had talked about an outcome which was agreeable to all three parties. How would that be achieved?