4

Gibraltar which are enshrined in the preamble to the Territory's

Constitution. Like successive Governments over the past 15

years, this Government has continued to honour the principle of

supporting and sustaining Gibraltar in her attempts to achieve

economic self-sufficiency, despite the difficulties caused by

restrictions on her communications with Spain.

[Defensive

The recent partial lifting of Spanish restrictions is no

substitute for their full removal as envisaged in the Lisbon

Agreement. We hope that the remaining restrictions will soon be

lifted.]

Hong Kong

During her visit to Peking in September 1982, the Prime

Minister agreed with Chinese leaders to enter discussions

through diplomatic channels on the future of Hong Kong with the common aim of maintaining the stability and prosperity of Hong

Kong. Given the common aim, we are confident that satisfactory arrangements can be worked out which are acceptable to Britain, China and the people of Hong Kong.

[ Defensive

**

The two governments have made their positions on sovereignty clear. For our part HMG intend to look not to the past but to the future in seeking acceptable arrangements.

Falkland Islands

The

I think I need hardly touch upon this problem.

Government have made it clear that while we are not prepared to resume negotiations on sovereignty, as though nothing had happened, we are more than willing to live at peace with Argentina and to move back towards a normal bilateral relationship. Further progress depends on Argentina. So long

as she maintains her threat to the Falkland Islands, we

ourselves will provide the Islands with adequate protection.

Our commitment to the social and economic development of the

Islands, was announced by my right honourable Friend, the Foreign Secretary, on 8 December 1982.

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