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Prime Minister, that this would not happen, for a fully representative government structure will require time to mature and indeed, shall require assistance and guidance in

order to mature. Above all, whilst authority and

responsibility may be delegated to a representative

government, HMG will still remain accountable in accordance

with paragraph 4 of the Joint Declaration to the Chinese

Government up to 30 June 1997. It could be used by the

Chinese Government as a breach on the part of HMG.

Finally, the people fear that given that Britain will be

relinquishing control of Hong Kong in 1997, and given that the broader interest of British-Chinese relationship, HMG may increasingly go for soft options and that the interest of Hong Kong may be sacrificed.

Some specific issues regarding the Joint Declaration

Prime Minister, there are a number of specific issues on which the people of Hong Kong have expressed concern. We have fully explained them to Mr. Luce who has promised us that they would be conveyed to Sir Geoffrey and yourself personally. This way we had the opportunity to discuss them with you and your Foreign Secretary.

Prime Minister, all of us in Hong Kong will do our part to make the Agreement work. The signs in China are good and we

hope that the present trends will continue. There are,

however, no guarantees in political life. If in the next 12 years there should be a reversal to radical policies in China calling into question her ability to implement the Agreement to the letter and spirit, I hope, Prime Minister, that HMG will undertake to review the situation in that

eventuality before transfer of sovereignty. Having said that, and as we said in our paper, we believe that the Agreement provides a sound basis for the people of Hong Kong to continue to apply their energy, talent, industry and

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