WW3 04/16

RECE'

PRIME MINISTER'S QUESTION TIME: 21 JANUARY IN

HONG KONG

Line to Take

As I told Mr Allen Lee and his group on Tuesday, we fully support Mr Patten and his proposals for

constitutional development. - We remain ready to discuss the proposals and to consider any alternatives which would also provide fair and open elections acceptable to the people of Hong Kong.

It will be for the Legislative Council in Hong Kong to take a decision. Governor will be putting his proposals to them next month.

Smooth transition very

much in Hong Kong's

interests and China's.

We

shall continue to work for

this.

Chinese threats to set up

some kind of shadow

administration and start

making unilateral preparations for 1997

Senior Chinese officials have recently confirmed publicly that China has no intention of breaching the Joint Declaration or setting up a 'shadow' government for Hong Kong.

They also accepted that Britain is responsible for Hong Kong's administration up to 1997.

20 JAN 1993

Contracts and Franchises

hils

"Y

Under the Joint Declaration and the Basic Law contracts and franchises signed by the Hong Kong Government will continue to be valid after 1997.

No problem in the past when Hong Kong authorities have discussed such contracts with the Chinese. A senior Chinese official confirmed recently that China would continue to take a positive attitude.

pm.ques.PR.JRB

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