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OPENING STATEMENT BY THE PRIME MINISTER
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"I should like to begin by saying how pleased I was with our
full and fruitful discussions yesterday on international matters. I was grateful for the information you provided, especially about Chinese relations with the Soviet Union and the United States,
and I was pleased to see that there was substantial agreement
between us on many issues.
As I indicated to you yesterday, I should like with your permission to speak to you today about Hong Kong. It is a problem which affects us both. Moreover, I understand that you have taken a close personal interest in it.
Hong Kong is a unique example of successful Sino/British co-operation. It flourishes well. Against this background I hope we can solve the problem of how to agree about its future while maintaining its prosperity. I note that on previous occasions you and your colleagues have said that you want to solve the issue by consultation and co-operation. That is our approach
too.
I have studied very carefully, what you said to Mr. Humphrey Atkins when he came to China in April and Mr. Deng Xiaoping's private remarks to Mr. Heath in April.
If my understanding is correct the two main elements of the Chinese view concern sovereignty and the continued prosperity of Hong Kong. I believe those were your own words when you spoke to Mr. Atkins. The first of these elements - sovereignty is likely to be a delicate matter for both sides and I should like to return to this point a little later.
First I should like to discuss the second element
prosperity.
I note that you think that to maintain Hong Kong's prosperity it should continue as a free port and an international centre of commerce and finance and that there should be a continuity of systems. I agree with those points but general assurances that
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