XN000022-1983-07-01 — Page 2

FRIDAY, JULY 1, 1983

PHASE I TALKS TO BEGIN ON JULY 12

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THE FOLLOWING ANNOUNCEMENT HAS BEEN MADE IN LONDON AND PEKING

+FOLLOWING THE DISCUSSIONS BETWEEN THE LEADERS OF THE TWO COUNTRIES IN SEPTEMBER 1982, AND SUBSEQUENT USEFUL EXCHANGES

IT HAS BEEN AGREED THAT A SECOND PHASE OF THE TALKS ON THE FUTURE OF HONG KONG WILL BEGIN IN PEKING ON 12TH JULY 1983.+

A GOVERNMENT SPOKESMAN SAID THAT THE GOVERNOR WOULD BE GOING TO PEKING FOR THE START OF THE SECOND PHASE. HE WOULD OF COURSE BE A MEMBER OF THE BRITISH DELEGATION WHICH WOULD BE LED BY THE BRITISH AMBASSADOR IN PEKING, SIR PERCY CRADOCK. HE WOULD BE ACCOMPANIED BY THE POLITICAL ADVISER.

THE SPOKESMAN SAID THAT THE GOVERNOR WAS LIKELY TO SPEND A FEW DAYS IN PEKING ON THIS FIRST VISIT TO TAKE PART IN THE TALKS. HE WOULD RETURN TO PEKING TO TAKE PART IN THE TALKS AS AND WHEN APPROPRIATE.

ASKED ABOUT THE MEANING OF THE SECOND PHASE THE SPOKESMAN SAID THAT HE COULD NOT USEFULLY ADD TO THE JOINT STATMENT. BUT THE POINT HAD NOW BEEN REACHED WHEN IT WOULD BE APPROPRIATE FOR THE GOVERNOR TO PARTICIPATE IN THE TALKS.

IN RESPONSE TO A QUESTION ON WHETHER THE START OF THE SECOND PHASE OF THE TALKS AND THE GOVERNOR'S ATTENDANCE AT THEM MEANT THAT BRITAIN HAD CONCEDED SOVEREIGNTY THE SPOKESMAN SAID THAT THE BRITISH POSITION ON SOVEREIGNTY WAS WELL KNOWN, HE ADDED THAT THERE WERE MANY SPECULATIVE STORIES IN THE PRESS. THEY DID NOT ACCURATELY REFLECT THE STATE OF THE TALKS OR THE BRITISH POSITION.

EXCO MEMBERS OFF TO LONDON

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A GROUP OF UNOFFICIAL MEMBERS OF THE EXECUTIVE COUNCIL LEFT FOR LONDON THIS (FRIDAY) EVENING FOR CONSULTATION WITH THE BRITISH GOVERNMENT.

TOGETHER WITH THE GOVERNOR, SIR EDWARD YOUDE, THEY ARE EXPECTED TO CALL ON THE PRIME MINISTER, HRS MARGARET THATCHER, THE SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS SIR GEOFFREY HOWE, AND THE MINISTER RESPONSIBLE FOR HONG KONG IN THE FOREIGN AND COMMONWEALTH OFFICE, MR RICHARD LUCE.

AT THE AIRPORT TO SEE THEM OFF WAS THE ACTING GOVERNOR, SIR PHILIP HADDON-CAVE.

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