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Neither side. We came close to agreement in March. Since then, we have kept in contact with the Chinese side and it has now been possible to reach agreement that the talks should start. Victory for common sense.

(ii) STATUS OF HONG KONG GOVERNMENT MEMBERS OF THE DELEGATION?

The talks are between the two sovereign powers. The agreed statement indicates that our Representative will be Sir R McLaren. Other officials from the British and Hong Kong Governments will be participating in these talks in exactly the same way as they have done in the past.

(iii) HOW LONG WILL TALKS LAST? WILL THEY DELAY THE

LEGISLATION?

We and the Hong Kong Government need to have legislation in place in good time for the District Board Elections in 1994 and the municipal and Legislative Council elections in 1995. We will therefore want to see quick progress. But there is a Lot of difficult ground to cover.

The Governor and his Executive Council will take decisions on introducing the Legislation to the Legislative Council in the light of progress in the talks.

(iv) WILL WE AND THE GOVERNOR AGREE TO DILUTE HIS PROPOSALS?

We are going into these talks with the aim of reaching an understanding. But not at any price. It remains an essential point for us and the Governor that elections held under British administration should be fair, open and acceptable to the people of Hong Kong.

(v) DOES THIS MARK THE END OF THE ROW BETWEEN BRITAIN AND

CHINA?

It is in Hong Kong's interests that we should have a cooperative relationship with China over Hong Kong. There is much work to be done if we

to achieve a smooth transition.

The British and Hong Kong Governments are ready to get on with that work. Hope agreement to discuss these electoral issues will enable work to go forward in other areas.

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