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Kong after 1997 would be enshrined in the agreement that both sides are aiming to conclude. Clearly I cannot go into details about the content of the talks or of a likely agreement. But equally clearly it is important that a binding international agreement enshrining
arrangements to be maintained for at least 50 years in Hong Kong and
the Basic Law which would subsequently describe the principles under which the territory would be administered should be consistent with
each other.
It
9. Some people have expressed the fear that a capitalist Hong Kong would not be compatible with a communist China. The Chinese have, however stated publicly that they want Hong Kong's social and
economic systems and lifestyle to remain unchanged after 1997.
is relevant that the present Chinese Government have adopted a markedly pragmatic approach to many problems including the accommodation of incentives and the profit motive. Their stated
objective is the co-existence of two systems in a single state, with
Hong Kong enjoying a high degree of autonomy. Of course we
appreciate the need to make such a plan as effective and secure as
possible. We do not take anything for granted. We are working for an arrangement which would embody this principle in a binding international agreement.
10. Some Hon members have raised the question of the status of those who now hold British Dependant Territories citienship by virtue of a connection with Hong Kong. The issue of nationality is an extremely sensitive one, both for us and the Chinese. I can assure Honorable
Members that we have been considering it most carefully. All I can
say now is that HMG are fully aware of the importance that many British Dependent Territories citizens in Hong Kong attach to the
retention of British nationality in 1997, and that any proposals to amend the British Nationality Act 1981 as a result of constitutional
change in Hong Kong in 1997 would need the approval of this
Parliament. (In referring to the Act, I mean only to note that if
Hong Kong ceased to be a Dependent Territory, certain amendments
would automatically be necessary.) HMG would of course take full
account of the position of British nationals in negotiating an
agreement. But our aim overall is to reach an agreement with China which will make Hong Kong a place with a genuine future for all its
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