17 NOV '92 11:43

SECRETARY OF STATE'S MEETING WITH VICE PREMIER ZHU RONGJI: TUESDAY 17 NOVEMBER

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Meeting lasted one hour.

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Amicable.

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Good discussions covering full range of UK/China issues.

Reviewed general state of our bilateral relations. political contacts, including at highest level.

Frequent

Also reviewed state of commercial exchanges. group ever recently visited China.

Biggest trade China's Economic Reform Programme offers huge opportunities for British exporters and investors.

A fair amount of time was spent on discussion of Hong Kong. Hong Kong is only one part, but an important part of our wide- ranging relationship. Secretary of State emphasised HMG's strong support for Governor and his constitutional proposals. No change in our policy on Hong Kong. co-operation with China for a smooth transition, in

Still hope to work in accordance with Joint Declaration. Governor's constitutional proposals fully consistent with Joint Declaration and Basic

We would welcome counter-proposals from Chinese side or from Hong Kong people and will consider alternative proposals seriously. Hope all this can be discussed calmly and constructively.

Law.

Gen

Mr Ehrme Mr Llewely Mr Hausa Mr Davies, For

Shiss Sanders

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