g.

In my statement I felt it was right to say that in my view it would not be realistic to think of an

agreement that provided for continued British administration in Hong Kong after 1997. In reaching this

conclusion we were fully aware of the wish of the Hong Kong people for the maximum continuity in every

respect. I can assure the House that we impressed this on the Chinese Government very strongly. We

explained in detail the advantages of the present system and argued strongly for its retention over a long

period. We therefore concluded that it would be right to concentrate on other ways of securing the

assurances necessary for the continuity of Hong Kong's stability, prosperity and way of life.

10. The House will understand why I cannot enlarge on the content of our negotiations with the Chinese

government. These negotiations are still in progress, and the confidentiality on which both sides are agreed

is important for their success. I am very much aware of the problems and anxieties for the people of Hong

Kong, and also of the frustrations for members of this House, which arise from the confidentiality of the

negotiations.

I greatly appreciate the patience which has been shown. I hope that what I was able to say in

my statement in Hong Kong and now in the House tonight will demonstrate that we are doing all we can, within

the constraints imposed on us, by the nature of the negotiations, to allow discussion on the future to be

conducted on a more informed basis.

NR3 ADR

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