CHINA'S opposition to a ''three-legged stool'' arrangement where Hongkong is allowed a role in matters for discussion between the two sovereign powers has been the main stumbling block to a resumption in talks. The Legislative Council's role in endorsing any Sino-British agreement on arrangements for the 1994/95 elections, plus Hongkong officials' direct participation in talks are the principal areas of disagreement. The British and Chinese conditions for a resumption of talks are: BRITAIN Hongkong officials must be included in any talks, on the same basis as other officials who take part. There should be no distinction between members of the team from London and Hongkong. Britain has proposed its ambassador to China, Sir Robin McLaren, to be the British representative. The Hongkong Secretary for Constitutional Affairs, Mr Michael Sze Cho-cheung, his deputy, Mr Peter Lai Hing-ling, Political Adviser Mr William Ehrma n, and head of the Hongkong Department in the Foreign and Commonwealth Office, Mr Peter Ricketts, will also be part of the team. An early start to talks is warranted. Britain will recommend to Legco any agreement reached between the two countries but it isup to Legco to decide whether to approve the deal. There should be no pre-conditions for talks, and Britain is willing to have talks based on the Joint Declaration, the Basic Law and other relevant Sino-British understandings. Britain continues to support the political blueprint put forward by Mr Chris Patten. CHINA The British team is to comprise Sir Robin and Mr Ricketts only. Hongkong officials, such as Mr Sze, Mr Lai and Mr Ehrman, can only serve as experts. The Chinese team is intended to be led by Vice-Foreign Minister Mr Jiang Enzhu and include a deputy director of the State Council's Hongkong and Macau Affairs Office, Mr Chen Ziying. A department director of the office, Mr Wang Fengchao, is also expectedto be an expert member. China has set no definite date for the opening of talks. Britain has to guarantee any deal struck between the two countries will be implemented. Any talks have to be based on the Joint Declaration, the Basic Law and the seven diplomatic exchanges. Mr Patten's political proposals are wholly unacceptable as they go against the Joint Declaration, the Basic Law and the seven diplomatic exchanges.