pus.vis.NAT

JEB

RF

HKD 021/3

16 JUN 1993

(40

IN.

PUS'S VISIT TO WASHINGTON: 20-22 JUNE

HONG KONG

Checklist of points to make

Hong Kong economy strong and business confidence high (encouraged by fact we are in negotiations with China). Seng index continues to break records.

Hong

Talks with China on Hong Kong electoral issues are progressing in a business-like atmosphere. But Fifth round ended on 16 June with no real progress. Still much detailed ground to cover. Sixth round scheduled for 23-25 June.

Our aim is to reach an understanding with China on

arrangements to ensure that the 1995 elections will be fair, open and acceptable to the Hong Kong people.

If we do reach an understanding, the British and Hong Kong Governments will recommend this to the Legislative Council in Hong Kong. It will be for them to pass the necessary legislation.

Have told Chinese we cannot allow talks to drag on

indefinitely. Legislation needs to be in place in time for District Board elections in September 1994.

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