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PRIME MINISTER'S QUESTION TIME:

18 MARCH

HONG KONG

Response to Lu Ping's press comments on 17 March

Have noted the remarks of Chinese spokesman. But cannot accept that publication of draft legislation makes it more difficult to begin talks, or closes any doors.

- Our position has been consistent. As Douglas Hurd said on 15 March, we want talks with China. We have done everything possible to get talks underway. The only sensible way forward is for the two sides to sit down and discuss without preconditions the points of difference between us.

- As Chris Patten has made clear, proper Hong Kong participation in the British team is an important point of principle for us. Hong Kong officials have been members of the British team for many years in our discussions with China.

(Defensive: Lu Ping suggested that the Prime Minister told Zhu Rongji we would like to send a special envoy to Peking.)

I told Vice Premier Zhu in November 1992 that I would be happy to send a personal envoy to resolve differences over the financing of Hong Kong's new airport. This proposal was not taken up by the Chinese side.

pm.4mar.PR

SLN

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