WHAT ARE THE PROBLEMS ON OTHER ISSUES?

Still hope for further talks, so do not want to get into

details.

But the main outstanding issues are: the Functional

Constituencies, where we offered in the talks to scale

down the Governor's original proposals while still retaining a

broad franchise; the Election Committee, where we are

prepared to take account of the Chinese concerns about the

format provided that all the members of this Committee are

themselves elected; and the Through Train, where we want it

agreed that legislators will not in 1997 be subjected to any

test of past political behaviour.

IF THE CHINESE SIDE PROPOSED MORE TALKS BEFORE LEGISLATION

INTRODUCED WOULD YOU AGREE?

3.12.PR.JRB

We would study any Chinese communication, as we always do.

We have made plain the steps we will be taking over the next

week. We have also proposed a further Round of talks on

17-18 December. But if the Chinese side wanted to meet

earlier to talk about the remaining issues we would be at

the table.

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