CONFIDENTIAL

10. Secondly,

under the terms of the agreement itself the

policies set out in the agreement will be stipulated in a Basic Law to be promulgated by the National People's Congress of the People's Republic of China: and they will remain unchanged for fifty years from 1 July 1997.

11.

Thirdly, the agreement contains a sufficient degree of detail to reassure opinion in Hong Kong and internationally about the future of the terrritory.

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It provides for Hong Kong to enjoy a high degree of

autonomy as a Special Administrative Region of the

People's Republic of China, and makes clear that the

socialist system and policies practised in the mainland

will not be applied to the Special Administrative

Region.

CONFIDENTIAL

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