CONFIDENTIAL

(M) CONCLUSION

31.

Despite the detailed comments with which I have been dealing,

as I said at the beginning of my speech I believe that the sense of the House is clear. The House accepts that the agreement is a good one, and that it provides acceptable guarantees for the future of

the territory.

32. Assuming that the House now approves the motion before it, the Government will move ahead to sign the agreement. The Prime

Minsiter will fly to Peking to sign it herself with her Chinese

counterpart, demonstrating the commitment of both governments to the

implementation of this agreement. The Government will introduce legislation in the New Year providing for the termination of

sovereignty in 1997 and other matters. The House will have a full

opportunity to discuss this Bill. The Government intends to ratify the agreement before 30 June 1985.

33.

1997 will mark a watershed in Hong Kong's history. Some change

is inevitable. Change is not new to Hong Kong: those who were there after the war would hardly recognise it now. But this, I agree is change of a different order. There are no absolute

guarantees for anyone about the future. But I believe that this agreement is sufficient to remove most of the uncertainties caused by the approach of 1997. I believe that it will also provide reassurance to those who trade and invest in Hong Kong. It gives those who live in Hong Kong the firmest possible basis on which to

build an even more prosperous future, and to make Hong Kong an even

more flourishing place than it is now. The people of Hong Kong have the courage, resilience, and the self-reliance to do this. I have

absolute faith in them.

34.

The signatures of two Prime Minister's on this agreement will

demonstrate the commitment of both countries to it. We look forward

to the closest cooperation with the Chinese Government. For its part Her Majesty's Government will remain fully committed to Hong Kong as the the administering power up until 1 July 1997 and will continue the tradition of prudence and impartial administration which has helped to make Hong Kong the place it is today. After

CONFIDENTIAL

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