Peking to appoint more "Advisers", including

Sir David Akers-Jones (a former Chief Secretary)

- A distinguished former civil servant. Entitled to his

views. Hope he will convey to the Chinese Government the strong wish of Hong Kong people for more democracy.

Li Peng's warning that Britain responsible for consequences

As the future sovereign power, China shares responsibility

for the future stability and prosperity of Hong Kong. Already has considerable involvement in the economic life of

the Territory.

- The British Government has been trying to engage the Chinese

side in constructive talks about the 1994/5 electoral

arrangements in Hong Kong for many months.

- It is China's continuing refusal to settle arrangements for

such talks which has led to the present situation, which we

very much regret.

- We shall continue to seek cooperation with China on the

basis of the Joint Declaration.

British "have created obstacles"/"unreasonable demands"/

("3-legged stool")

- Our approach to talks has been clear and consistent. We

have told the Chinese side that we are ready for talks at any time without preconditions. We delayed publication of the Governor's legislation, but emphasised that we could not

do so indefinitely. We gave the Chinese side plenty of notice that we would need to publish on 12 March if we had

not agreed talks by then.

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