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3.

GUARANTEES:

(a) Mr Healey said that a written agreement could not provide an

absolute guarantee against fundamental political change. He

added that the United Kingdom could take no action against China

if the agreement was broken. The best guarantee he said was the

economic benefit that China drew from the territory.

(b) Mr Adley (Conservative) said that absolute guarantees were

impossible. He said that if the Chinese reneged they would earn

the opprobrium of the world.

(c) Sir Humphrey Atkins (Conservative) said that there could be no

guarantee. However the People's Republic of China had honoured

international agreements in the past and had an economic interest in the continued prosperity of Hong Kong. This view was echoed by Sir P Blaker (Conservative) Mr Wrigglesworth

(SDP) Mr Walden (Conservative) and Sir Ian Percival

(Conservative).

4. NEED FOR A DETAILED AGREEMENT:

(a) Mr Healey said that a detailed agreement would increase

confidence in Hong Kong, but China saw policies for the

territory after 1997 as an internal question.

(b) Mr Heath emphasises the need for an internationally registered

agreement.

(c) Sir Paul Bryan (Conservative) pressed for a detailed agreement.

This view was echoed in the debate by Mr Clarke (Labour), Mr

Soames (Conservative), Sir P Blaker (Conservative), Mr Miller

(Conservative), Sir Philip Goodhart (Conservative) and Sir Ian

Percival (Conservative). All of whom pressed for a binding and

detailed agreement. Mr Walden (Conservative) said that the

agreement should be particularly detailed in the financial

sphere.

5.

ACCEPTABILITY:

(a) Mr Healey agreed that a referendum was impossible and that other

means must be used to ascertain the acceptability of any

agreement.

(b) Mr Heath said that it was wrong to suggest that every aspect of

the final agreement should be acceptable to most of the people

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