the community in Hong Kong. The stock market fell temporarily,

although Hong Kong's economic fundamentals remained strong.

17. At a press conference immediately after the Governor's visit to Peking, a senior Chinese official claimed that the

Governor's proposals violated agreements and understandings

reached in exchanges of correspondence in early 1990 between

the Foreign and Commonwealth Secretary and his Chinese

counterpart. To set the record straight, Her Majesty's

Government published the seven documents concerned. These

showed that the two sides had reached a common view that there

should be eighteen directly-elected seats in the Legislative

Council in 1991, but that there was no agreement on electoral

arrangements for 1995. These were left open for future

discussion.

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