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LORD CAITHNESS: THESE MATTERS HAVE BEEN SETTLED TRADITIONALLY BETWEEN HONG KONG GOVERNMENT AND THE SERVICES. IT IS VERY HELPFUL FOR ME WITH MINISTER RESPONSIBLE FOR HONG KONG TO HEAR THE VIEWS OF EVERYBODY AT FIRST HAND, FOR ME TO CONSIDER THOSE VIEWS WHICH I WILL DO. THEY HANDED ME A NUMBER OF LETTERS WHICH I WILL REPLY TO, HAVING CONSIDERED THEM, BUT IT IS FOR THE HONG KONG GOVERNMENT TO DETERMINE THESE SERVICES.

BERNARD FONG: BUT THIS IS NOT TRADITIONAL TIMES, LORD CAITHNESS. THESE ARE THE TIMES OF ANXIETIES AND THAT IS WHY PEOPLE ARE MAKING APPEALS AND MAKING ARRANGEMENTS FOR THEIR FUTURE. WHAT I AM BASICALLY ASKING YOU IS THAT WILL THE BRITISH GOVERNMENT DECIDE TO INTERVENE SHOULD PROBLEMS IN HONG KONG REALLY FESTER, AND THAT HONG KONG GOVERNMENT PROCESS IS UNABLE TO COPE WITH MOUNTING PROBLEMS?

LORD CAITHNESS: I THINK THAT IS AT THE MOMENT A HYPOTHETICAL QUESTION.

VERY

BERNARD FONG: SIR, BUT MANY THINGS FOR HONG KONG ARE HYPOTHETICAL INCLUDING

LORD CAITHNESS: BUT AT THE MOMENT, THAT IS STILL A HYPOTHETICAL QUESTION.

VERY

CHRIS GILLETTE, VISNEWS: SPEAKING OF HYPOTHETICAL IN LIGHT OF EVENTS OF JUNE 4 LAST YEAR, WHAT GIVES YOU THE IMPRESSION THAT

THE BEIJING AUTHORITIES WILL TOLERATE AN ELECTORAL SYSTEM RIGHT ON THEIR DOORSTEP AFTER 19977

LORD CAITHNESS: IT IS WRITTEN DOWN AND AGREED.

JOHN ANDREWS: GIVEN YOUR EAGERNESS AND THAT OF THE SECRETARY OF STATE TO GO TO BEIJING, SHOULD WE TAKE IT THEN THAT YOU FEEL THE TIME HAS COME TO END ALL INTERNATIONAL SANCTIONS AGAINST CHINA? AND IF SO, WHY?

LORD CAITHNESS: I THINK IT IS RIGHT TO DEVELOP OUR RELATIONSHIP WITH CHINA. YOU ARE RIGHT TO MENTION THE INTERNATIONAL SANCTIONS, AND PARTICULARLY WE ARE CONSTRAINT TO SOME EXTENT BY WHAT WE CAN DO WITHIN THE EUROPEAN COMMUNITY BECAUSE THE COMMUNITY HAVE AGREED. THERE HAVE BEEN TWO SPECIAL EXEMPTIONS: ONE FOR PORTUGAL IN ITS FRIENDSHIP WITH MACAU, ONE FOR BRITAIN IN ITS RELATIONSHIP WITH HONG KONG, BUT WE WILL SEEK ΤΟ IMPROVE THE RELATIONSHIP WITH CHINA AND I THINK THAT TWO POSITIVE FACTORS THAT HAVE EMERGED IN THE MONTH OF AUGUST: FIRSTLY, IS CHINA'S VERY CONSTRUCTIVE ATTITUDE IN TRYING ΤΟ HELP REACH A SETTLEMENT OF CAMBODIA IN THE PERMANENT FIVE BRINGING PEOPLE TO JAKARTA AND TRYING TO GET A RESPONSIBLE SETTLEMENT THERE THAT CAN LEAD TO A SUPREME NATIONAL COUNCIL AND IN DUE COURSE ELECTIONS AND WITH REGARD TO THE GULF, TOO, I THINK IT HAS BEEN VERY POSITIVE THE ROLE THAT CHINA HAS PLAYED.

/JOHN ANDREWS:

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