CONFIDENTIAL

DRAFT SPEECH BY THE PRIME MINISTER AT THE BANQUET IN PEKING

ON 19 DECEMBER

1.

Your Excellency, Premier Zhao Ziyang, Your Excellencies, Ladies and Gentlemen. It is a privilege and great pleasure

for me

to be visiting China for the third time in seven

years. Each visit has been all too short. But each visit here also made a deep impression on me. This visit has a special importance because it marks an historic achievement.

2.

That achievement was our signature this morning of the Joint Declaration on Hong Kong. In my speech at the

signature ceremony I described the significance which we

attach to the Joint Declaration; our determination to make a

success of it; and the firm basis which it lays down for the

growth and prosperity of Hong Kong's unique society into the middle of the 21st century. I expressed my conviction that

the people of Hong Kong would rise to the challenge that lies

ahead of them.

3.

The world can draw a lesson from the successful outcome of our joint enterprise:

determined negotiation can succeed where confrontation

would surely lead to disaster;

goodwill and friendship can overcome misunderstanding;

CONFIDENTIAL

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