BACKGROUND NOTE

1. The initialling in Peking on 26 September of the Sino-British agreement on Hong Kong's future marked the culmination of two years. of intensive negotiations which had as their agreed common aim, the

maintenance of Hong Kong's stability and prosperity. The British

Government's aim was to seek a settlement which would be acceptable

to Parliament, China and the people of Hong Kong.

2. Parliament has now endorsed HMG's intention to sign the draft Agreement. In doing so it took full account of the views of the people of Hong Kong, which were collected and analysed by an Assessment Office established in Hong Kong. Its report concluded that most of the people of Hong Kong find the draft agreement acceptable. An independent Team of Monitors confirmed that the

Assessment Office had carried out its task impartially, faithfully

and accurately, and confirmed its conclusion.

3. A Bill will be introduced early in the New Year to give effect

to the provisions of the agreement. Ratification must be completed

by 30 June 1985.

Hong Kong Department

12 December 1984

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