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DRAFT OUTLINE OF SECRETARY OF STATE'S SPEECH IN PARLIAMENTARY DEBATE

ON HONG KONG

1. Glad of opportunity to debate Hong Kong following visit to Peking and to Hong Kong. Last opportunity was during Foreign Affairs

debate on 22 March. I said that we must bear in mind realities of

the situation and unique historical and geographical circumstances

of Hong Kong. I explained that at present continuity was assured by British administration but that in 1997 Britain's lease of 92 per

cent of the territory comes to an end. In these circumstances it

becomes possible and indeed desirable to visualise other ways in

which continuity can be assured.

2. In Peking met Chinese leaders including Chairman Deng Xiaoping.

Serious and detailed discussion of future of Hong Kong. Meetings were business-like and atmosphere good. Progress made in talks over

the future. But difficult negotiation still lies ahead.

Some way

to go before an agreement.

3. Then went on to Hong Kong. Had meetings with a wide cross

section of opinion including the Unofficial Members of the Executive

Council and Legislative Council. Made statement on 20 April about

the future of the territory (deposited in the Library of House.)

Made it clear that it would not be realistic to think of an

agreement that provides for continued British administration in Hong

Kong after 1997. Explained in statement that we have been

concentrating on other ways of securing assurances necessary for continuity of Hong Kong's stability, prosperity and way of life.

4. I believe that British and Chinese Governments share a desire to

see the continuation in Hong Kong of a society which enjoys its own

economic and social systems and distinct way of life. With this common aim I believe it should be possible to negotiate a situation in which Hong Kong would as part of China enjoy a high degree of autonomy. There would be autonomy in administration, the making of

laws, the maintenance of Hong Kong's own familiar system of justice

and responsibility for public order in the teritory. Existing

freedoms would be maintained. Hong Kong would manage its own

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