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JEB

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SECRETARY OF STATE'S VISIT TO FINLAND, 25/26 APRIL

Points to Make

Hong Kong

Economic fundamentals in Hong Kong remain extremely sound (5% growth forecast this year). Hong Kong's economic future

looks positive. But we also need to create the right

political environment.

Welcome agreement to start talks with China on Hong Kong

electoral issues which started on 22 April.

It is in Hong Kong's interests that we should have a cooperative relationship with China over Hong Kong. There is

much work to be done if we are to achieve a smooth transition.

The British and Hong Kong Governments are ready to get on with that work. Hope agreement to discuss these electoral issues

will enable work to go forward in other areas.

- Our aim is to reach an understanding with China on

arrangements to ensure that the 1995 elections will be fair, open and acceptable to Hong Kong people. Talks will not be easy. Legislation needs to be in place in time for the District Board elections in 1994 and the Legislative Council

elections in 1995. We will therefore want to see quick

progress.

But there is a lot of difficult grounds to cover.

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.

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