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be a transitional period while China maintained that sovereignty and administration were inseparable. The HK Daily News speculated that the talks had slowed down because of the forthcoming retirement of Sir Percy Cradock. Another reason was that China needed more time to collect views and information about HK and to invite more local groups to visit Beijing. Besides, the Governor's status in the talks might be in question as China did not want the bilateral talks to become tripartite.
The following day, a number of papers quoted a report from the Times in London that Sir Edward Youde would go to Beijing in May. The purpose of his visit was not mentioned.
Later the Oriental Daily News said Britain was now in a disadvantageous position as a result of China inviting local business and academic groups to visit Beijing. Britain could only adopt an indifferent attitude because any counter measures might destabilise HK. It quoted diplomatic sources as saying that Britain had to remain silent on the progress of the talks because any disclosure, even through informal channels, would undermine HK's economy.
2.
INTERVIEW WITH MRS. THATCHER:
On April 4, The Asian Wall Street Journal published excerpts of an interview the Prime Minister gave to Norman Pearlstine, editor and publisher of The Wall Street Journal/ Europe and Alan Otten, its European bureau chief. Among the issues discussed in the interview was HK's future. In reply to a question on where the talks on HK future were going, Mrs. Thatcher said: "I do think that we are very keen to keep the stability and prosperity of HK if we possibly can. That is compounded of these two remarkable things the Chinese character and the present administration. That is where we have to start. In reply to another question on whether the communique had a stabilising effect, she said: "It is always difficult to know. What the communique did was to set out agreed objectives. The communique was agreed between Deng Xiaoping and myself; and the statement was agreed to by the two of us after considerable discussions. The objectives still remain, and I just hope that we can reach agreement on how to do it because I believe it is in all our interests that we should. And really when you have got this remarkable thing, you would really think that both China and ourselves could reach some agreement on how to preserve it. Because it is a remarkable achievement."
The story was picked up by several Chinese papers including the HK Economic Journal. Commenting on this, the left-wing New Evening Post said Mrs. Thatcher should be applauded for her latest remarks on HK's future because she had refrained from insisting on the three treaties governing the territory. However, her statement only marked a small step forward in her attitude towards the HK question. It also viewed her remark that HK's prosperity hinged on the present administration and Chinese character as Whitehall's recognition of China's sovereignty over HK.
Earlier a few papers reported that in a written reply to a parliamentary question, the Prime Minister said she had held two meetings with the Governor and Sir Percy Cradock to review HK's future. The meetings were part of the regular consultations on the issue. The Financial Daily quoted London sources as saying that the meetings also mapped out
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