was handed over in advance of the following Round of talks.

The British side added one point of substance: that the single-seat-single vote method should also apply to the

Legislative Council geographical elections. They explained that provided draft legislation on all these issues could be introduced into the Legislative Council quickly, a little more time would be gained to resolve the remaining issues. But to serve any practical purpose, a first stage understanding would

have to include the voting method for the Legislative Council.

It would also need to allow the British side to introduce draft

legislation for the abolition of appointed seats in the 1994-5 elections. The Chinese side did not contest this latter point in initial discussion of our draft Memorandum of Understanding.

37.

Following a Ministerial meeting, attended by the

Governor, on 10 November, the Prime Minister sent Premier Li Peng a message. He welcomed the progress which had been made towards an understanding on the most immediate issues, and indicated that for practical reasons it would be

necessary to reach agreement on these issues very soon. The

Prime Minister also noted that if it was possible to reach

early agreement on these issues, there would be a little more time to tackle the more difficult issues, and proposed a more intensive final phase of the negotiations.

38. The British side therefore sought in the Round following this message (Round 16) to reach agreement on the text of a

Memorandum of Understanding. But the Chinese side refused to

agree that it should cover the voting method for the Legislative Council geographical elections. They also said

that they were not willing to agree that the British side

should abolish appointed seats in the District Boards and

Municipal Councils in 1994-95, despite the fact that they had

not previously contested clear statements from the British side that their proposal would only be of value if it allowed that

statement.8/BRIEFS/NJH

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