publication for four further weeks. But we told the Chinese side that it was not possible to delay indefinitely, given the need to pass legislation before the Legislative Council rose for its summer recess in July.

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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

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