HONG KONG: BULL POINTS

RELATIONS WITH CHINA OVER HONG KONG

- Good cooperation with China on the basis of the 1984

Sino-British Joint Declaration is in the best interests of Hong

Kong. We and the Chinese Government remain committed to the

Joint Declaration. We want to see a smooth transition to

Chinese sovereignty in 1997.

It is in the interests of China, as well as the people of

Hong Kong, that Hong Kong should remain successful and prosperous up to 1997 and beyond. We believe strong democratic institutions are a key part of safeguarding Hong Kong's way of life as promised in the Joint Declaration.

- Rule of law, buttressed by a free-standing legislature,

necessary to maintain business confidence in the longer term.

- The Governor's approach has the full support of the British

Government from the Prime Minister downwards. And that includes

the Foreign Office.

PEKING TALKS ON THE 1995 ELECTIONS

Talks are taking place in a business-like atmosphere. Our aim is to reach an understanding with China, but not at any price.

It remains an essential point for us that elections held under British administration should be fair, open and acceptable to

the people of Hong Kong.

- Will recommend to the Hong Kong Legislative Council any

understanding reached with China. It will be for them to pass

bullpts.PR.JRB

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