pslt.hk.PETER
JEB
CONFIDENTIAL
statements from the Chinese leadership during their National People's Congress indicated that they are still open to talks with us (on their terms) but that introduction of the legislation into LegCo would mark a decisive parting of the ways. Meanwhile they have decided to set up a
"preparatory working body" to prepare for 1997; but this has been presented in a low profile way and reactions in Hong Kong have been calm;
the community in Hong Kong, including all sides in
LegCo, want to see Sino/British talks. This
reflects an optimistic assumption that the present
problems would be resolved if talks could be held.
The status of Hong Kong Government participants is
not seen as an issue which should prevent talks;
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the Governor and ExCo therefore concluded on 30
March that they should take a decision after Easter
on when to introduce the legislation into LegCo. The Governor considers that it will be very
difficult to resist pressure for introduction of
the legislation on 21 April (LegCo's first day back
after the Easter recess) unless we are in a
position to announce talks by then;
Mr Goodlad has underlined to Ambassador Ma our
continuing interest in holding talks. [We await a Chinese response];
the dispute with China is holding up agreement over the financing of the airport project, and technical work in the Joint Liaison Group. But despite
CONFIDENTIAL
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