Councils play a particularly valuable role.
7.
Participants in Talks
The talks have so far been conducted through diplomatic
channels in Peking. The Governor is closely involved.
will attend as and when necessary.
8. Confidence in Hong Kong
:
There has recently been some nervousness in the Foreign
He
Exchange and Stock Markets in Hong Kong. But there is an
underlying strength in the Hong Kong economy which is reflected
in indicators such as export performance.
9.
Sovereignty
The positions of the British and Chinese Governments are
well-known. But given the common aim I believe differences
can be reconciled and an agreement reached.
10. UK Position on Sovereignty
Our position has been clearly stated. The right way to deal
with any difference of view is by discussion and agreement.
It is important to look to the future rather than to the past.
I would rule out no solution that was acceptable to the people
of Hong Kong and to this Parliament.
11 Failure to Reach Agreement with the Chinese
This is a very pessimistic view. Given the common aim we
believe a satisfactory agreement can be reached.
12. Chinese Statements
We are sure that the Chinese share our view that nothing should
be done to damage confidence in Hong Kong. The right course
is to preserve confidentiality of the discussions and to
/avoid
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