TNAG-2781-FCO40-4000-Future-of-Hong-Kong-constitutional-development-Chinese-reac-1993 — Page 108

.8.93

31.8.93

1.9.93

1.9.93

Lan Ching in Ta Kung Pao

Zhou Nan to reporters before an NPC Standing Committee

meeting in

Peking

HKMAO Vice-

director Chen Ziying quoted by a visiting HK Junior Chamber

of Commerce delegation to Peking

NCNA HK Vice- director Zheng Guoxiong to

reporters at ૩ National Day

preparatory

committee

luncheon

CONFIDENTIAL

8

Mr Patten's remarks that having no

agreement is better than having a "bad" agreement is worrying. To him, any agreement different from his package will be considered "bad". His remarks also show that he is prepared to disregard any agreement to be reached and push ahead with his reforms. If this happens, the PWC will still make preparations for HK's reversion to China.

The Chinese side has always hoped that the talks will make progress. Whether there will be a breakthrough at the 10th round depends on efforts from both sides.

Although the talks has yielded some fruit progress has not been exactly satisfactory. The Chinese side wants to have a solution soon, but the talks has not reached that stage yet. The problem now is not democracy, but whether the two sides are to return to the basis of the "three conformities" and whether pledges made are to be honoured.

The Chinese side has always held a positive and sincere attitude towards the talks but whether the talks will yield fruit will depend on efforts from both sides. We expect the British side to demonstrate the same sincerity. Reaching an agreement should not be difficult if the talks are conducted on the basis of the "three conformities". I cannot see any problem of the Chinese side not responding to certain proposals and therefore affecting the progress of the talks. Using a deadline to put pressure on the Chinese side will not be conducive to negotiations.

CONFIDENTIAL