are on the brink of capitulation. Our principles are clear,

and we will stick to them.

Third, the Governor and I have made plain many times that

there will be no secret deals. How could there be? LegCo has

the responsibility to pass legislation on the 1994 and 1995

elections. Once the talks with China have ended we will

commend draft legislation to LegCo. We would much prefer this

to be on the basis of agreement with China. Either way it will

then be up to you and your colleagues to weigh up all the factors, and to pass the legislation which in your judgement is right in the circumstances. We will respect LegCo's decision.

We fully intend to uphold the Joint Declaration, and to

discharge effectively our responsibility to administer Hong Kong up to 1 July 1997. We are working for success in the

talks with China, because we believe that Sino-British

cooperation to achieve a smooth transition, in this area as in

others, is preferable to confrontation. It is proving an

uphill struggle. An agreement which provided for fair and open

elections, together with a set of acceptable objective criteria

for the through train, would be a considerable prize. It would

provide an important element of continuity, and would, in my view, be widely welcomed in Hong Kong. We will go on striving

to reach such an agreement in the time that remains the

people of Hong Kong would expect no less of us. But we shall

do so on the basis of the principles I have set out. We are

not looking for a deal at any price, and it is quite wrong to

suggest that we are.

I hope that we can all approach these difficult issues

calmly, and together reach conclusions which are in the best

interests of Hong Kong.

Good writer,

Your

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Hund

DOUGLAS HURD

Qony've

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