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"THE PRIME MINISTER

Der Jim,

ONDON SW1A 2AA

LONDON S

LET 103196

ER:

HKD

CC:PS

fo fu (28

PS/Mr Goodlad

*55-11

5 July 1993

M Bantes?

Thank you for your letter of 23 June. It was good of you to give me

such a full account of your talk with Jiang Zemin on Hong Kong, as well as

sending me a copy of the Interaction Council's report.

I read with interest your and Michael's notes on your talks with Jiang

Zemin. It was helpful that you emphasised the need to proceed by negotiation

and agreement over Hong Kong. We are now making some progress in the

talks - although not as much as we would like. Your encouragement to the

Chinese side to take a sensible approach can only be useful in securing a

successful outcome.

I noted your comment that the time might come when Robin McLaren

would need some Ministerial backing on the spot. We have decided to offer the

Chinese a brief visit by Douglas Hurd to Peking on his way back from the

Tokyo Summit, on 8 and 9 July. I hope this will help to move matters

forward.

May

thanks.

The Right Honourable The Lord Callaghan of Cardiff, KG

Evo

z

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