It's impossible to look far into the future.

The most important change

we want to see is a cessation hostilities by Argentina. This hasn't yet

happened. They have not even excluded the possibility of further action,

although that is of course perhaps unlikely, and I think that's a terrible

thing. At the moment we are trying to clear up the ravages after the invasion,

remember that the Argentine was the aggressor, they went to attack and a lot of damage was done. We have got to clear that up and we are of course providing

defence to the Islands. More than that, we have made a sum of over £30 million

available for the economic development of the Islands and a greater degree of

expansion in the economy. We are trying in other words to re-establish and rehabilitate the Islands on the basis of a more prosperous future. Now, at the

moment, because of what happened, the Islanders of course feel more hostile

to the people of the Argentine than they did before. Naturally they do, and

they are amazed that the rest of the world doesn't try and insist that

Argentina doesn't try and pursue its objectives by peaceful means. That's an

extraordinary thing and I don't think there's going to be much change in the

Falkland Islands until there is a big change of heart by the Argentine. In the fullness of time, depending what happens in the next few years, you can

imagine that the Islanders might take a different view about their future.

That remains to be seen. At the moment, as I say, we are busy helping them

re-establish their livelihood.

Q:

If an Argentine government would give assurances that they would not repeat an attack, leaving the Falklands alone, would the British Government take back all your troops....?

A:

No, I don't think we would do that, but of course we would have a com-

pletely new situation in those circumstances. Those are circumstances that

we want to see, a completely new situation, and we would then of course be able

to reconsider the force levels and the adequacy of our defence forces.

Q:

A:

What do you think about the future of Hong Kong?

It's very important, particularly for the people of Hong Kong. The objective is to maintain the stability and the prosperity of Hong Kong and

the Prime Minister of the United Kingdom and of China agreed that this was

the objective when they met in Peking in September. We are now talking to

them and negotiating with them about how this is to be achieved.

As you

know the point is that in 1997 the lease on the New Territories runs out and

that lease covers 92% of the land and that reverts to China. Nobody's

arguing about that but there are two other pieces of land, including Hong

Kong island, which are British by treaty and somehow we have to come to an

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