TNAG-2769-FCO40-3986-Hong-Kong-and-the-media-interviews--press-briefings-and-the--1994 — Page 110

HONG KONG: BULL POINTS

RELATIONS WITH CHINA OVER HONG KONG

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Good cooperation with China on the basis of the 1984

Sino-British Joint Declaration is in the best interests of Hong

Kong. We and the Chinese Government remain committed to the

Joint Declaration. We want to see a smooth transition to

Chinese sovereignty in 1997.

- It is in the interests of China, as well as the people of

Hong Kong, that Hong Kong should remain successful and

prosperous up to 1997 and beyond. We believe strong democratic

institutions are a key part of safeguarding Hong Kong's way of life as promised in the Joint Declaration.

Rule of law, buttressed by a free-standing legislature,

necessary to maintain business confidence in the longer term.

- The Governor's approach has the full support of the British

Government.

PEKING TALKS ON THE 1994/1995 ELECTIONS

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We have not broken off the talks. We have made it plain to the Chinese side that we remain ready to carry forward our discussions on the main issues and we hope the talks will

continue. But as we have said all along, we are now up against

time constraints on the urgent issues relating both to the 1994

and 1995 elections.

bullpts.PR.JRB