SECRET

17.

Throughout our conduct of the negotiations on Hong Kong's future, the anxieties and concern of the

people of the territory have been at the forefront of our minds. I am very conscious that it is their future

and their livelihood which is at stake. In particular I understand the concerns of those people in Hong Kong

who hold British nationality, mainly as British Dependent Territories Citizens. I have to say that I do not

believe that either this Parliament or successor would favour any arrangement which resulted in mass

emigration from Hong Kong, to the UK or elsewhere. We are therefore looking for an arrangement which, while

not bolting the door, would provide a real future for Hong Kong people in Hong Kong.

18.

I believe that this is both realistic and achievable. I have been impressed by the courage of

Hong Kong people, just as I have been impressed by the sense of responsibility and commitment displayed by

members of Hong Kong's public service. The resilience and initiative which the Hong Kong people have shown

in the past will once again be tested. I am confident that they will have the strength and the

determination to contemplate their future constructively and in a spirit of realism, with a sense of

commitment to their community.

19. The development of Government in Hong Kong along increasingly representative lines, which I fully

endorse, will give people there the means and, I hope, the confidence to contribute more fully to their own

future. That is particularly important because in practice already it is people in Hong Kong not HMG, who

manage the day to day life of Hong Kong. The decisions affecting Hong Kong society, its economy, its

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