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10.

The Chinese government have made it clear publicly that they

see the administration, after 1997, as being in the hands of Hong Kong people themselves. This would follow a process of development which I am glad to say is already under way, and which I expect to

evolve further. During the years immediately ahead, the government

of Hong Kong will be developed on increasingly representative

lines.

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11. Her Majesty's Government are working for an agreement in which arrangements for Hong Kong's continuing prosperity and stability based on effective autonomy would be formally recorded. Such an

agreement would by itself create a legal and political obligation binding the two governments involved. That is a strong guarantee of observance. It would be recognised as such by the international community. The international prestige of both countries would be at

stake. Together with the clear common interest that Hong Kong

should continue to flourish, there would be a powerful incentive to maintain the agreement.

12. 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, to allow discussion on the future to be conducted on

a more informed basis.

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13. From the very beginning of our negotiation with the Chinese government our consultation with the people of Hong Kong has been a continuous process. It had taken many forms our close contact the with Executive Council, Ministerial visits to the territory, the reception of delegations to London and attention to the views and opinions which reach the Hong Kong government through many channels. The views expressed by the Hong Kong people will continue to be

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