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It is disappointing that, despite all our efforts, the

Chinese side were still not able to agree by 12 March to a

date for talks or even to a date on which an announcement

of talks could be made. 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 the legislative process. Introduction of the Bill

into the Legislative Council would be a separate step. As

the Governor has said, we will have to judge, in the light

of 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 before they reach a

decision.

Publication of the legislation should not 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 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.

We remain ready for talks at any time and I hope that

the Chinese side will be prepared to settle quickly on

arrangements for them. Britain has responsibility for the

administration of Hong Kong until 1997. Part of that

responsibility is to maintain the steady progress towards democracy in Hong Kong. We are open to discussions about

how to achieve that.

It will be for the Legislative Council to enact the necessary legislation. They will need to do so by the end of their present session in July, if the elections are to

be held on time. We have said that we will accept their

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