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7. (IF NECESSARY). THERE IS NO QUESTION OF A SPLIT WITH THE UNOFFICIALS. COLLABORATION WITH THE UNOFFICIALS, INCLUDING THE EXCO UNOFFICIALS WHO ARE THE GOVERNOR'S CONFIDENTIAL ADVISERS, REMAINS CLOSE. THEY ARE AN IMPORTANT SOURCE OF ADVICE.
8. THE QUESTION HAS ALSO BEEN RAISED OF WHETHER THE ESSENTIALS OF THE BASIC LAW THAT THE CHINESE HAVE SAID THEY WILL ENACT FOR HONG 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.
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. IT 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
OF STATE, WITH HONG KONG ENJOYING A HIGH DEGREE OF AUTONOMY. COURSE WE APPRECIATE THE NEED TO MAKE SUCH A PLAN AS EFFECTIVE AND SECURE AS POSSIBLE. WE DO NOT TAKE ANYTHING FOR GRANTED. ARE WORKING FOR AN ARRANGEMENT WHICH WOULD EMBODY THIS PRINCIPLE
IN A BINDING INTERNATIONAL AGREEMENT.
10.
I
WE
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. 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
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