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British administration.

The terms of an agreement

between the British and Chinese Governments still

have to be worked out. But it is right for me to

tell you now that it would not be realistic to think

of an agreement that provides for continued British

administration in Hong Kong after 1997. For that

reason, we have been concentrating on other ways of

securing the assurances necessary for the continuity

of Hong Kong's stability, prosperity and way of life.

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I believe there is a basis on which this can be

achieved. The Chinese Government have made it clear

publicly that they recognise the special circumstances

of Hong Kong, and that they want its social and economic

systems and Lifestyle in many ways so different from

those of mainland China - to remain unchanged. We

share with the Chinese Government the strongest

possible common interest in that objective. Our

approach to the talks has, therefore, been to examine

with the Government of China how it might be possible

to arrive at arrangements that would secure for

Hong Kong, after 1997, a high degree of autonomy under

Chinese sovereignty, and that would preserve the way

of life in Hong Kong, together with the essentials of

the present systems.

With this in mind, the British Government's

objectives are clear: a framework of arrangements

that will provide for the maintenance of Hong Kong as

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