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Although China has disagreed with a number of the Governor's proposals, there is still a great deal of common ground between Britain and China over Hong Kong. We have a shared interest in preserving the stability and prosperity of Hong Kong and in achieving a smooth transition. We have a shared commitment to the Joint Declaration. I hope that we can translate that soon into discussions on the arrangements for

the 1995 elections.

This is an important moment in Hong Kong's political development. There are difficult issues to be thrashed out. But Hong Kong has a reputation for finding solutions which work. I am confident that solutions can be found on the electoral issues which should be

acceptable to all concerned.

That will allow all of us

to get on with ensuring that the transition is achieved as efficiently as possible.

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