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Rebsa. Pat

HUD

Opposition

Thank you

4

RECEPTOR IN REGISTRY

SECRETARY OF STATE'S MELTIENG WITH JACK CUNNINGHAM MP, 18 MARCH

HONG KONG

PA

Action Taken

Most grateful for your support in the House on Monday. Gratifying that our approach appears to have widespread

support on both sides of the House.

Disappointing that, despite our intensive efforts over two months, we failed to secure an acceptable basis for talks

with China on Hong Kong's electoral issues.

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I indicated that the immediate cause was the status of

Hong Kong Government representatives in the talks. You

should know that at the last moment, when agreement to talks

looked in sight, Chinese reopened the agreed announcement

and tried to insert wording which would have downgraded the

role of Hong Kong Government representatives in the talks.

Chinese were also unwilling to settle a date for talks.

The Governor therefore published his draft legislation on 12

March. Introduction into LegCo a separate step, to be

decided later.

Strong support in Hong Kong from liberals. But pro-business and pro-China groups critical. Hong Kong public 2:1 in

favour.

- As expected, Chinese spokesmen have reacted harshly. They

appear to have ruled out talks and have said that they will prepare for a new legislature and a new Government in 1997.

We face another bumpy period. Are emphasising that the door remains open.

Know that some on the Chinese side favoured

talks and hope they will prevail. But if we must, we will

get the legislative process underway. Aim is to have the

legislation passed by the July recess.

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