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066065 MDLIAN 0931
BASIS FOR SINO-BRITISH TALKS WHICH WOULD NO LONGER BE POSSIBLE UNDER THE CIRCUMSTANCES. MR ZHENG SAID THE TALKS SHOULD BE BETWEEN THE CHINESE AND BRITISH GOVERNMENTS. OFFICIALS OF THE BRITISH HK AUTHORITIES HAD NO RIGHT TO BE FORMAL MEMBERS. CHINA WOULD ALSO NOT ALLOW A LOCAL GOVERNMENT OVERTURNING AN AGREEMENT REACHED BETWEEN TWO SOVEREIGN STATES.
6. IN A JOINT STATEMENT, THE PRIME MINISTER'S OFFICE AND THE FCO REITERATED (13.3) THE BRITISH GOVERNMENT'S SUPPORT FOR THE GOVERNOR'S DECISION TO GAZETTE THE BILL. THEY REGRETTED TALKS COULD NOT BE RESUMED. THE STATEMENT STRESSED THE BRITISH SIDE WAS PREPARED TO START TALKS AT ANY TIME. THE ORIENTAL DAILY NEWS REPORTED MR ALAISTAIR GOODLAD MET THE CHINESE AMBASSADOR IN LONDON MA YUCHEN TO EXPLAIN THE REASONS FOR GAZETTING THE BILLS. MR MA EXPRESSED CHINESE STRONG OPPOSITION TO THE DECISION. THE BRITISH AMBASSADOR TO PEKING, SIR ROBIN MCLAREN, SAID GAZETTAL SHOULD NOT BE INTERPRETED AS THE BRITISH SIDE NOT BEING SINCERE ABOUT HOLDING TALKS AND SHOULD NOT CREATE OBSTACLES TO FUTURE
TALKS.
7.
THE ORIENTAL DAILY NEWS (13.3) QUOTED SOURCES AS SAYING THE PUBLIC SHOULD UNDERSTAND THREE POINTS: (1) BOTH SIDES HAD NOT BEEN ABLE TO AGREE ON A DATE FOR RESUMPTION OF TALKS IN FIVE WEEKS: (2) BOTH SIDES HAD NOT BEEN ABLE TO EVEN COME TO AN AGREEMENT THAT AN ANNOUNCEMENT ON TALKS BE MADE THE FOLLOWING WEEK AND (3) CHINA HAD CREATED NEW PROBLEMS OVER THE STATUS OF HKG OFFICIALS PARTICIPATING IN THE TALKS: AN ISSUE WHICH WAS NOT A PROBLEM IN SINO-BRITISH NEGOTIATIONS IN THE PAST TEN YEARS. QUOTING SOURCES CLOSE TO THE CHINESE SIDE THE HK ECONOMIC JOURNAL SAID CHINESE INSISTENCE THAT HKG OFFICIALS COULD NOT BE FORMAL MEMBERS OF THE TALKS WAS TO GUARD AGAINST ANY ''THREE LEGGED STOOL' TRICK BY THE BRITISH SIDE.
8. THE PRESS REPORTED PROMINENTLY (13.3) REACTIONS FROM MAJOR POLITICAL GROUPS. MARTIN LEE (UDHK) SAID THE DECISION TO GAZETTE THE BILL WAS CORRECT AND THE BILL SHOULD BE INTRODUCED INTO LEGCO THE FOLLOWING WEEK. HE STILL HOPED THAT THE TWO GOVERNMENTS COULD RESUME TALKS. LEGCO'S CONSIDERATION OF THE BILL WOULD HELP THE TWO GOVERNMENTS UNDERSTAND THE COUNCIL'S VIEW AND ENSURE AN AGREEMENT ACCEPTABLE TO LEGCO. SZETO WAH URGED THE TWO GOVERNMENTS TO RESOLVE THEIR DIFFERENCES AND REFRAIN FROM DOING ANYTHING THAT WOULD HARM HK'S ECONOMY. ALLEN LEE (CRC) SAID THE GAZETTAL WAS NOT PRUDENT AND WAS A STEP BACKWARD. LEONG CHE-HUNG (MEETING POINT) SAID IT WAS A MOVE IN THE RIGHT DIRECTION AND THE
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