CHINA said early today (Hong Kong time) that it would not accept any 'unilateral action' by Britain to set up the Court of Final Appeal. Ambassador Zhao Jihua, the new leader of the Chinese delegation at this week's Joint Liaison Group (JLG) talks in London, refused to say what action China might take. But he made clear that although London and Beijing stood by the 1991 agreement on the court, consultation on the draft bill was continuing. His statement came an hour after British delegation leader Hugh Davies said the proposed legislation would be laid before the Legislative Council early next year. Although the Chinese side appeared to have pulled back from statements by Lu Ping, director of the Hong Kong and Macau Affairs Office, questioning whether judges could serve beyond 1997, Mr Zhao made clear the debate was far from over. He said the British delegation had only recently handed the Chinese side a copy of the bill. Mr Davies admitted the results of the talks did not match up to what was 'required and expected'. Clearly frustrated, he added: 'While we have taken some useful steps forward we have failed to achieve the necessary momentum, particularly in areas of major importance to Hong Kong. 'It is clear we are going to have to do very much better in the remaining 21/2 years.' Both sides made clear they were looking at ways to speed up progress in the JLG. They are considering extending the length of the twice yearly meetings as well as increasing the number of contacts at expert level.