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social systems will continue: that Hong Kong's economy will remain open to

world markets: that they will be able to speak and meet and travel as they

wish. HMG fully understand this concern.

it t

But the

8. At present continuity is assured by British administration.

future-is-bound to bring changes. We must and do bear in mind the

realities of the situation and of Hong Kong's unique historical and

geographical circumstances, including the fact that the lease on 92% of the

is due to territory expires in 1997.

Oase realities - to ensure

9.

best to

The problem that we face is how to effect change while ensuring

, in tlong kory s systems) continuity and while preserving the territory's continuing stability and

prosperity, the agreed common aim of the talks.

challenges for China as it does for ourselves.

people of Hong Kong themselves.

This poses as many

And, of course, for the

10. Ten rounds of intensive talks have now been held since last July in the

second, more detailed phase of negotiations.

The tenth last week was

4

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