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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.

Perfidious Britain

We

Our approach to talks has been clear and consistent.

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.

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

("3-legged stool")

Governor has bent over backwards to get talks underway. Only reasonable that representatives of the Hong Kong

Government should participate in talks about future political development of Hong Kong, on same basis as other

members of the team.

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