The progressive tense is better here because "referring" happens concurrently with "talk" (rather than subsequent to it or as a result of it). As a related example, compare: When the telephone rang I ignored it. When the telephone rang I was having dinner.
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The progressive tense is better here because "referring" happens concurrently with "talk" (rather than subsequent to it or as a result of it). As a related example, compare:
When the telephone rang I ignored it.
When the telephone rang I was having dinner.