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- Chinese side. In the light of this we decided, with the avice of the Executive Council, to postpone gazettal on

February while making clear to the Chinese side that such postponement could not be carried forward indefinitely and

Dawn by that talks would need to get off to an early start as there was a practical need to press ahead with the legislation. On February 16 we proposed that the 2 sides should announce an ca ly starting date for talks and told the Chinese of the composition of our negotiating team.

Pending a Chinese response we delayed gazettal for a second time on 19 February and for a third time on

26 February. We decided that we should allow every possible opportunity for the Chinese side to respond. We felt that the Community would expect us to go that extra mile in an effort

secure productive talks with the Chinese Government.

Since the beginning of March we have been in continuous and substantive contact with the Chinese authorities but have not yet been able to agree and announce a starting date for talks. (We have told the Chinese authorities that we are

ready for talks to proceed on the basis of the Joint Declaration, the Basic Law and the exchange of correspondence between the two Foreign Ministers. I have consistently made clear that I consider my proposals are wholly compatible with these.) We have again proposed early dates for talks to

begin.

In this situation, I thought it only fair to give Menourable Members an account of where we now stand. As far. we are concerned we are ready to talk immediately. There remain outstanding some points of detail raised by the Chinese side which we regard as relatively minor. E do not intends at

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presing Lor the outstanding differences to be resolved

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