THE COURSE OF THE NEGOTIATIONS
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9. The Prime Minister's visit was followed by the first phase of negotiations, conducted by H M Ambassador, Peking and the Chinese Foreign Ministry. These consisted of exchanges between the two
sides on the basis on which the negotiations would be conducted, and
on the agenda. On 1 July 1983 it was announced that the second
phase of the talks would begin in Peking on 12 July. The pattern of
negotiation in the second phase, which was continued until the end
of the negotiations, was for formal rounds of talks to be held
between delegations Led by HM Ambassador in Peking and a
Vice-Minister of the Chinese Foreign Ministry, supplemented as
necessary by informal contacts between the two delegations. The
Governor of Hong Kong took part in every round of formal talks as a
member of the British delegation.
10. In the course of the negotiations the British side explained in
detail the systems which prevail in Hong Kong and the importance for
these systems of the British administrative role and link.
Following extensive discussion, however, it became clear that, since
in the Chinese view, sovereignty and the right of administration
over Hong Kong were inseparable, no continuation of British
administration after 1997 would be acceptable to China. After full
consultation with the Governor and the Executive Council of Hong
Kong, the British side therefore proposed that the two sides discuss
on a conditional basis what effective measures other than continued
British administration might be devised to maintain the stability
and prosperity of Hong Kong and explore further the Chinese ideas
which had at that stage been explained to them, in order to see
whether China and Britain could construct on this basis arrangements
which would ensure lasting stability and prosperity for Hong Kong.
The Chinese side were told that if this process was successful, the
British Government would consider recommending to Parliament a
bilateral agreement enshrining the arrangements. The British
Government also undertook in this event to assist in the
implementation of such arrangements, and to recommend to Parliament that sovereignty and administrative control pass to China.
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