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DEFENSIVE

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Outstanding issues in the talks?

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I have said key issues are Election Committee, Functional Constituencies and through train. On first two we have put forward revised proposals designed to take into account Chinese concerns. We have made a major effort to bridge

the gap.

On the last we are continuing to press for a full

statement of Chinese ideas.

Did you brief Qian on the Governor's LegCo address?

I thought it right to give a general indication of the approach the Governor will take on the electoral talks. [If asked] As is customary, the Chinese side will be given an advance text shortly before the address is delivered.

Why was Hong Kong not represented?

But my

Mr Sze, who has attended some of my previous meetings with the Chinese Foreign Minister, has much work in Hong Kong in connection with the LegCo address. It was at the Governor's request that he stayed in Hong Kong. brief for today was as always prepared in close consultation with the Governor, and he will

receive a full report.

Martin Lee claims there will be "total capitulation"

Not at all. Our bottom line remains where it always was that electoral arrangements should be fair, open and acceptable to the people of Hong Kong. At the end of the day it will be for LegCo to approve them.

The Olympics

That is in the past. The IOC has made its decision in favour of Sydney. Neither Peking's bid nor Manchester's found favour with the IOC. We must now wish Sydney well

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