CONFIDENTIAL
3114 MDHOAN 1102
issues. Too early to say whether it can be bridged. A great deal of work to be done. We are serious in wanting agreement. But not at any price. Must be fair, open and acceptaole to the people of hong kong.
3.
(1)
(II)
OFFENSIVE POINTS (UNCLASSIFIED)
·
BETTER NO AGREEMENT THAN A BAD AGREEMENT (IE WITH TOO MANY CONCESSIONS)
No ouestion of a deal at any price. But Hong kong people would want us to make every effort to reach agreement provided essential principles are not sacrificed.
IF THERE IS NO AGREEMENT, WHY HOLD ELECTIONS IN 1995 WHEN THE CHINESE HAVE SAID THEY WILL HOLD NEW ONES IN 1997? Our responsibility to see the 1995 elections are held openly. fairly and on time. What China does after 1997 is her responsibility. Smooth transition as much in China's interests as in Hong Kong's, and Chinese spokesmen have said they will work for this.
BACKGROUND (CONFIDENTIAL, FOR YOUR INFORMALLON ONLY)
5.
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