HONG KONG

sub.cabinet.MORRIS

JEB

We agreed at OPD (K) on 1 July, at Chris Patten's

suggestion, that the talks with the Chinese on Hong Kong had made sufficient progress to justify a visit by me to Peking. I went on 8 and 9 July, calling into Hong Kong on

9 July to report to the Governor and ExCo.

I made clear in advance that I was not going to negotiate and would not be concluding an agreement. Therefore

avoided false expectations or fears in Hong Kong that I might be undercutting the Governor.

It was a useful visit. It re-established dialogue with the

Chinese Foreign Minister, who brings a broader perspective to discussion of the Hong Kong problem. created a positive tone.

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On the electoral issue, the Chinese had before my visit set out their ideas on two of the key issues, the Functional

Constituencies and the Election Committee. I said that we

would be ready to examine revised proposals on these to see

whether they could meet our essential requirements that the elections should be fair, open and acceptable to Hong Kong people.

I also emphasised the importance to us of clear criteria on

the through train. Qian accepted that this was an issue for discussion. He also agreed on the need for faster

progress and proposed that we meet again in the margins of the UN in late September to review progress.

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