THAT CHINA RECOGNISED THAT FOR HONG KONG TO BE SUCCESSFUL IT WOULD
HAVE TO OPERATE AS A FREE MARKET CAPITALIST SYSTEM. THAT WAS SOME-
THING THAT WAS ACCEPTED AND THAT CHINA WOULD SEEK TO WORK OUT
ARRANGEMENTS WHICH WOULD ALLOW AN ADMINISTRATION, A SEPARATE
ADMINISTRATION AND, I RECALL I BELIEVE, AN AUTONOMOUS OR ONE WITH
AUTONOMY WHICH WASN'T SPECIFIED, TO FUNCTION HERE. CHINA WOULD
REGARD ITS FAILURE TO MANAGE A SUCCESSFUL TRANSITION AS A VERY
SERIOUS SETBACK TO ITS OWN SELF INTEREST. I CAN UNDERSTAND THAT
FOR A NUMBER OF REASONS. I AM SATISFIED THAT THE BRITISH AUTHORITIES
ARE COMMITTED TO SEEKING TO ENSURE THAT THAT TRANSITION PROCESS
IS SUCCESSFUL AND THAT THE POST-1997 PERIOD WILL PROTECT THE
INTERESTS OF THE PEOPLE OF HONG KONG. WHATEVER DIFFERENCES I MIGHT
HAVE WITH MRS THATCHER IN SOME AREAS OF HER POLICIES, I HAVE TO
FREELY ACKNOWLEDGE THAT SHE IS STEADFAST IN HER PURPOSEFULNESS AND
THAT THERE WOULD BE NO DOUBT ABOUT HER COMMITMENT TO SEEK TO ENSURE
THAT THIS TRANSITION PROCESS WAS SMOOTH AND SUCCESSFUL. THAT IS,
JUST AS THE CHINESE HAVE STRESSED TO ME THAT THE BEST INTERESTS OF
THE PEOPLE OF HONG KONG IS UPPER MOST IN THEIR MIND AND THEIR MAJOR
OBJECTIVE IS FOR HONG KONG TO CONTINUE OPERATING POST-1997 AS IT
HAD BEEN UP UNTIL THAT POINT. I AM EQUALLY PERSUADED THAT THE
BRITISH AUTHORITIES HAVE THE SAME COMMITMENT. NOW I CANT TELL YOU
ANY MORE THAN THAT. I THINK YOU HAVE PICKED UP FROM WHAT I SAID, THAT AUSTRALIA HAS A JUSTIFIABLE INTEREST IN WHAT TAKES PLACE IN
THIS MATTER. CERTAINLY WE DO NOT HAVE A RIGHT TO BE INTRUSIVE AND
WE CERTAINLY DONT SEEK IN ANY WAY TO INVOLVE OURSELVES IN THE
PROCESSES WHICH ARE UNDERWAY. MERELY TO INFORM OURSELVES.
QUESTION: DO YOU SEE ONE OF THE MAIN PROBLEMS FOR AUSTRALIA (IF
THIS IS HANDLED BADLY) AS BEING THE MASSIVE REFUGEE OUTFLOW FROM
HONG KONG ?
MR HAYDEN: I AM ONLY PREPARED TO SAY WHAT I SAID THAT THE EVIDENCE
IS THAT 30TH SIDES ARE KEEN TO SEE A SMOOTH TRANSITION AND THE
EVIDENCE AT THIS POINT IS THAT THAT WILL BE ACHIEVED. THE MODALITIES
HAVE TO BE WORKED OUT AND NO DOUBT THERE WILL BE SOME HAGGLING
ABOUT THE SPECIFICS OF THOSE MODALITIES. AT THIS POINT ANYWAY BOTH
SIDES ARE KEEN TO HAVE A SUCCESSFUL RESULT. I SEE NO REASON THEREFORE
WHY THEY SHOULDNT BE SUCCESSFUL. CONSEQUENTLY, I DONT THINK IT
APPROPRIATE TO REFLECT ON THE PROPOSITION YOU PUTTING FORWARD. THAT
WOULD JUST ADD TO UNCERTAINTY. I DONT THINK UNCERTAINTY IS JUSTIFIED
CERTAINLY NOT ON THIS POINT.
QUESTION: DO YOU HAVE ANY UNDERSTANDING WHETHER THE ISSUE OF
SOVEREIGNTY BETWEEN THE UNITED KINGDOM AND CHINA HAS BECOME MORE
FLEXIBLE OVER RECENT WEEKS?
MR HAYDEN: I THINK THE PROBLEM ABOUT THE FUTURE ISNT SO MUCH OVER
SOVEREIGNTY BUT OVER AUTHORITY AND ADMINISTRATION OR THE QUESTIONS
WILL BE, BUT I REALLY THINK THEY ARE MATTERS THAT THE BRITISH
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/AUTHORITIES