It is disappointing that, despite all our efforts, the Chinese

side were still not able to agree by 12 March that talks

should get underway promptly. As we had forewarned them, the

Governor therefore published his proposals that day.

A copy

has been placed in the Library of the House.

Publication in the Official Gazette is only the first step in

Introduction of the Bill into the

the legislative process.

Legislative Council would be a separate step. As the Governor

has said, we will have to judge, in the light of subsequent

developments, when to take that step. Thereafter, I am sure

that members of the Legislative Council would want to discuss

the draft legislation in great detail, in the light of the

various alternatives put forward.

There is no reason why publication of the legislation should

make it more difficult to begin talks with China. The Bill

sets out the Governor's proposals, which have been public

since October, in legislative form. This does not affect the

basis for talks with China, the need for such talks or our

sincere wish to hold them. We have said that if we reached an

understanding with the Chinese side we would recommend this to

the Legislative Council.

sosstatement15.3No1

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