XN000022-1984-07-07 — Page 2

SATURDAY, JULY 7, 1984

DISMISS RUMOURS, SAYS GOVERNOR

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THE SINO-BRITISH DISCUSSIONS ON THE FUTURE OF HONG KONG

ARE PROCEEDING NORMALLY AND OTHER RUMOURS SHOULD BE DISMISSED, SAID THE GOVERNOR, SIR EDWARD YOUDE, ON HIS RETURN FROM LONDON TONIGHT (SATURDAY).

SIR EDWARD WAS GREETED AT THE AIRPORT BY THE ACTING CHIEF SECRETARY, MR DENIS BRAY, SENIOR UNOFFICIAL MEMBER OF THE EXECUTIVE COUNCIL, SIR S.Y. CHUNG, AND SENIOR UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL, MR ROGER LOBO.

SPEAK ING TO REPORTERS, SIR EDWARD SAID: +1 HAVE HAD THREE DAYS IN LONDON ENGAGED IN DISCUSSIONS WITH THE PRIME MINISTER, THE SECRETARY OF STATE, MR LUCE, AND SIR RICHARD EVANS WHO ALSO CAME BACK FROM PEKING TO TAKE PART IN THEM. THESE DISCUSSIONS ARE OF COURSE PART OF THE REGULAR SERIES OF CONSULTATIONS WHICH

WE HAVE BEEN HAVING ON THE PROGRESS OF THE TALKS IN PEKING.

+ONCE AGAIN THE MINISTERS IN LONDON REITERATED THE IR DETERMINATION TO PURSUE THE NEGOTIATIONS TO A SUCCESSFUL CONCLUSION AND WE SHALL BE WORK ING HARD TO THAT END.

+ I HEARD, JUST BEFORE I LEFT, THAT THERE HAD BEEN CERTAIN DEVELOPMENTS IN THE FOREIGN EXCHANGE MARKET AND OF COURSE I WILL BE GETTING A FULL REPORT ON THAT, AND ON OTHER MATTERS, OVER THE WEEKEND FROM THE CHIEF SECRETARY AND FROM THE FINANCIAL

SECRETARY. I WAS GLAD TO HEAR THAT THINGS SEEM TO HAVE SETTLED DOWN A BIT.

+FOR THE REST, AS YOU KNOW MR SCHULTZ IS HERE THIS WEEKEND AND I AM LOOKING FORWARD TO HAVING A CHAT WITH HIM AND THEN NEXT WEEK I SHALL BE GOING BACK TO PEKING WHERE THE DISCUSSIONS ARE PROCEEDING ENTIRELY NORMALLY. IF YOU HAVE HEARD OTHER RUMOURS MAY I SUGGEST YOU DISMISS THEM. THINGS ARE GOING ON NORMALLY AND THERE ARE NO DRAMATIC DEVELOPMENTS.+

US SECRETARY OF STATE ARRIVES

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THE UNITED STATES SECRETARY OF STATE, MR GEORGE SHULTZ, ARRIVED IN HONG KONG THIS (SATURDAY) MORNING FOR A VISIT AS PART OF HIS PACIFIC TOUR.

MR SHULTZ WAS MET AT THE AIRPORT BY THE DIRECTOR OF PROTOCOL, SIR JOHN CURLE, THE CONSUL-GENERAL OF THE UNITED STATES OF AMERICA, MR BURTON LEVIN AND MRS LEVIN, AND THE ACTING POLITICAL ADVISER, MR RICHARD MARGOLIS.

THE SECRETARY OF STATE AND HIS PARTY WILL LEAVE HONG KONG ON MONDAY (JULY 9).