CONFIDENTIAL

MAINTENANCE OF LAW AND ORDER UP TO 1997

It would be over sanguine to deny that Hong Kong's society will face exceptional strains in the period up to 1997 and beyond. It will

pass through a transition which is without precedent in history. But

there are a number of factors which give me hope that the transition

can be successfully negotiated. First there is the resilience and

strong civic sense of the Hong Kong people, by which I set great

store. Second there is the joint aim of the British and Chinese

governments to maintain stability and prosperity and assure the smoothest possible transition in 1997. Lastly, there is the

determination of the British and Hong Kong Governments to exercise

full authority, in every aspect of Hong Kong's life including the

maintenance of law and order, up to the due date in 1997. On this

last point I believe the Chinese Government fully understands our position.

CONFIDENTIAL

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