XN000022-1993-03-12 — Page 2

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MR PRESIDENT,

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FRIDAY, MARCH 12, 1993

GOVERNOR AT LEGCO

STATEMENT AND ANSWERS TO QUESTIONS

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LET ME FIRST OF ALL APOLOGISE TO HONOURABLE MEMBERS FOR HAVING TO POSTPONE MY APPEARANCE BEFORE THIS COUNCIL YESTERDAY AFTERNOON AT SUCH SHORT NOTICE. I VERY MUCH APPRECIATE THE INCONVENIENCE THIS WILL HAVE CAUSED TO HONOURABLE MEMBERS. WE DID, AS HONOURABLE MEMBERS KNOW, RECEIVE A FURTHER COMMUNICATION FROM THE CHINESE SIDE AT ABOUT 1 O'CLOCK YESTERDAY; WE HAD TO CONSIDER THIS URGENTLY DURING THE COURSE OF YESTERDAY AFTERNOON, AND I WOULD NOT HAVE BEEN IN A POSITION TO PROVIDE THE COUNCIL WITH ANY MORE INFORMATION THAN I WAS LAST WERK. SO I APOLOGISE FOR THAT INCONVENIENCE AND I HOPE THE COUNCIL WILL UNDERSTAND THE REASONS FOR MY ACTION.

I AM, HOWEVER, IN A POSITION TO MAKE A FURTHER

AFTERNOON.

STATEMENT THIS

DESPITE OUR HOPES AND OUR BEST ENDEAVOURS RIGHT UP UNTILTHIS AFTERNOON, IT HAS SO FAR STILL NOT PROVED POSSIBLE ΤΟ RESOLVE THE DIFFERENCES BETWEEN THE BRITISH AND CHINESE SIDES THAT STAND IN THE WAY OF TALKS GETTING UNDERWAY. J PARTICULARLY REGRET THIS, AS WE CONSIDER THESE DIFFERENCES COULD AND SHOULD BE RESOLVED QUICKLY. I REALISE THAT THIS NEWS WILL CAUSE CONSIDERABLE DISAPPOINTMENT THROUGHOUT THE COMMUNITY. IT IS A DISAPPOINTMENT THAT I SHARE, HENCE THE EFFORTS THAT WE HAVE MADE TO ACHIEVE THE PROGRESS WE WOULD ALL LIKE TO SEE.

WE HAVE MADE CLEAR SINCE OCTOBER THAT WE ARE WITHOUT PRE-CONDITIONS. THAT REMAINS OUR POSITION.

WILLING TO TALK

OF THE ON WHICH CAN SER

IT IS NOT FOR ME, OF COURSE, TO REFLECT THE POSITION CHINESE SIDE. BUT LET ME SPELL OUT UNEQUIVOCALLY THE BASIS THE BRITISH SIDE HAS BEEN PREPARED TO TALK, SO THE COMMUNITY FOR ITSELF THAT WE HAVE BEHAVED REASONABLY AND SINCERELY IN THESE DISCUSSIONS.

FIRST, WE HAVE SAID TO THE CHINESE SIDE THAT TO TALK ON THE BASIS OF THE JOINT DECLARATION, CONVERGENCE WITH THE BASIC LAW AND THE RELEVANT AGREEMENTS REACHED BETWEEN BRITAIN AND CHINA. PROPOSALS TO BE WHOLLY COMPATIBLE WITH THESE.

WE ARE PREPARED THE PRINCIPLE OF UNDERSTANDINGS AND WE CONSIDER OUR

THE

SECONDLY, WE MADE PLAIN THAT IN ANY TALKS

BRITISH TEAM WOULD INCLUDE THE NECESSARY HONG KONG OFFICIALS WITH THE RELEVANT KNOWLEDGE AND EXPERIENCE, ON THE SAME BASIS AS OTHER OFFICIALS TAKING PART IN THE TALKS, BOTH THE PRIME MINISTER AND THE FOREIGN SECRETARY HAVE MADE THIS POINT PUBLICLY IN THE LAST 48 HOURS. HONG KONG OFFICIALS HAVE PARTICIPATED IN PAST DISCUSSIONS WITH THE CHINESE SIDE AS MEMBERS OF THE BRITISH TEAM, INCLUDING DURING THE NEGOTIATIONS ON THE JOINT DECLARATION AND IN THE JOINT LIAISON GROUP.

/WE HAVE