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4. It is not of course true that the agreement was motivated by British or Chinese self-interest. The common aim of the negotiations on Hong Kong's future was the maintenance of Hong Kong's stability and prosperity. Our aim was to seek a settlement which would ensure stability and prosperity and be acceptable to Parliament, China and the people of Hong Kong. We believed that such a settlement would need to

in

enshrine

a legally binding form, clear and detailed arrangements for Hong Kong's future based on continuity of its present systems and lifestyle. This is what we have achieved.

5.

are

I hope that you will find the foregoing useful if you

asked about any of the points which it addresses.

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J S C Priest (Mrs)

Hong Kong Department

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