HIKK 040/31

RECEIVED IN REGISTRY

SPEECH FOR DEBATE ON HONG

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In Viher will be speaking (- Land 57. Ĉ thich he shall be teevad KONG HOUSE OF LORDS, 21st MAY, 1984

DEEK OFFICEBY LORD MACLEHOSE OF BEOCH INDEX

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This Unstarred Question provides Your Lordships with an

opportunity to comment on the Government's approach to the

future of Hong Kong as set out by the Foreign Secretary, first

in Hong Kong and then in Another Place on 16th May.

I believe he was absolutely right to say that the concept of

British administration after 1997 was now unrealistic. Palateable

or unpalateable, it was an inescapable conclusion. It leaves

those concerned free to concentrate on defining alternative arrangements which both Governments believe will be realistic and

which will allow Hong Kong people and investors to know what their

future prospects are.

It was most remarkable and helpful that it was the Chinese

Government itself, which from the outset recognised that the object

for successor arrangements in Hong Kong should be continuity, that

it should be managed quite differently to the rest of China, and

that the essentials of present systems and freedoms, including

the capitalist system, should be maintained. The Foreign Secretary

defined what these essentials were. While a great deal will depend on the detail contained in the eventual international binding

agreement, surely we can welcome the objectives towards which both Governments are working. There may be points still to resolve

but we have very stout negotiators. In Sir Edward Youde, Sir Percy Craddock, Sir Richard Evans and in the Foreign and Commonwealth Office team until recently led by Mr Donald, we have one of the

most expert and experienced as well as devoted teams that have

ever been assembled.

Nevertheless, a great many people in Hong Kong are deeply.

worried about their future, and we have had a visit of the UMELCO

Group to explain to us what they believed these worries to be.

And in the circumstances, I think it was their clear duty to do

this.

/It is.

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