CONFIDENTIAL

MEETING OF UK COMMANDERS-IN-CHIEF COMMITTEE: 12 DECEMBER 1984

ITEM VIII:

HONG KONG

POINTS TO MAKE

1.

[Parliament has now endorsed HMG's intention to sign draft

Sino-British agreement on Hong Kong's future which was initialled in

Peking on 26 September. In doing so, took full account of views of people of Hong Kong on overall acceptability of agreement. These

collated and assessed by Assessment Office established for the purpose in Hong Kong. Independent monitors confirmed that Assessment Office had carried out its task impartially, faithfully

and accurately.

2.

Agreement to be signed on

signed on 19 December in Peking by

Prime Minister and Chinese Premier Zhao Ziyang. Comprises Joint

Declaration, 3 Annexes and Associated Exchange of Memoranda on nationality questions].

3. Agreement is culmination of two years of intensive negotiations. These had as agreed common aim, the maintenance of Hong Kong's stability and prosperity. Our aim was an agreement which would maintain stability/prosperity and be acceptable to

Parliament, China and people of Hong Kong.

4. Believe agreement provides best possible guarantee of Hong Kong's stability/prosperity. Under its terms, Britain will retain administrative responsibility for Hong Kong until 1 July 1997, when Hong Kong to become a Special Administrative Region (SAR) of the People's Republic of China (PRC). Agreement provides for smooth transition to Hong Kong's new status, for a high degree of autonomy for the future SAR, and for the continuation of the essential elements of Hong Kong's systems and way of life.

Confidence in these has been lifeblood of Hong Kong's success.

5.

Key features of package:

/ (a)

CONFIDENTIAL

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