Basic Law, or any relevant agreements or understandings, but

they have not done so. We have also said that we would

welcome alternative proposals which they believe are compatible with the Joint Declaration and the Basic Law.

They have not responded.

We have not lost sight of the importance to Hong Kong of

China's goodwill, nor have we been provocative in our

dealings with China. Had we wished to be provocative, the

Governor could have proposed an increase in the number of

directly-elected seats for LegCo in 1995. He did not do so.

He could have invited some elected representatives of LegCo

to serve on the Executive Council. He did not do so. What

he did was to formulate a set of proposals designed to

accommodate both the desire of Hong Kong people for a

moderately faster pace of constitutional development, and the

Chinese insistence that the Basic Law cannot be changed

before 1997. In short he sought to propose a reasonable

basis for a compromise, and furthermore said that he would

welcome alternative ideas. It is disappointing that the

Chinese have responded in a signally unreasonable fashion.

As I said in my

You ask what we going to do about this.

letter of 24 March, we shall continue to work calmly for

cooperation with China to ensure the future success of Hong Kong. The only sensible way to proceed is to sit down

together to discuss our differences, and we remain ready to

do this at any time. As to Zhang Youyun, I was unable to

meet her myself, but Alastair Goodlad had a talk with her and made clear our wish to settle quickly on arrangements for

talks.

DOUGLAS HURD

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