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4.
On Hong Kong the Foreign Secretary said that there had been movement by the Chinese away from their position of complete intransigence. He hoped that it would shortly be possible to announce talks about talks on electoral arrangements for 1995. There was no question of withdrawing the Governor's proposals, albeit the formal publication on draft legislation might be delayed.
5. Finally, on the question of reform of the UN Security Council, the Foreign Secretary noted that the Council was active as never before. He did not regard the maintenance of Britain's Permanent Seat as a matter of prestige but felt that it was a substantial asset through which to promote British interests and values. He noted that Britain and France were the biggest contributors to UN peacekeeping efforts. This did not mean that Britain was intent on being a world policeman but reflected that we had a wider view of the world and were prepared to make a contribution to promoting international stability.
6.
Tony Marlow contrasted the Government's view that the argument was going Britain's way in Europe with recent remarks about the inevitability of a federal Europe from Commissioner Bangermann. He felt that HMG had a record of underestimating "threats" especially in underplaying the constitutional significance of the Single European
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If Britain was heading for a federal Europe then there was an overwhelming case for a referendum. The Foreign Secretary replied that Bangermann and other traditionalists naturally regretted the change in direction in the Community. He cited policy changes on subsidiarity, on the Community budget, and on enlargement as evidence of growing British influence over events. needed greater self-confidence about our place in the Community. Conversely if we wrecked the Maastricht Treaty then we would prevent enlargement, through the Community into institutional crisis without, in the process, preventing EMU.
7. Sir Michael Marshall asked what representations had been made by industry on the operation of the Single Market and on ratification of the Treaty. The Foreign Secretary replied that commerce and industry were keen that Parliament should proceed with ratification as soon as possible to end uncertainty. There was evidence of some multi national companies holding off investment decisions for fear of Britain becoming "semi-detached". He noted that not all industrialists were strongly against the Social Chapter. Nicholas Budqen argued that the Government's legal advice could not be trusted. alleged that there had been several shifts on the status and enforceability of Article 3b. He argued that Parliament should be able to ask for advice on aspects of the Maastricht Treaty from the legal services of the
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