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With it, we can tackle change constructively.

We must

In

preserve the best of the past in building the future.

that spirit, we welcome the challenge of new technology and

will make sure our people will enjoy its benefits.

In

Both our countries have changed in the seven years

since my first visit here, and changed for the better.

China, a new atmosphere of confidence and dynamism has been

reflected in steady economic growth over the last 5 years

and increased opening to the outside world. In agriculture,

you have had consecutive record harvests for the last 5 years.

China is now the world's foremost grain producer.

These are the first fruits of the reforms which you

have instigated, and you are now embarking on an ambitious

programme of industrial reform. We watch this process of

change with admiration and with intense interest.

In Britain, we have succeeded in controlling inflation;

increasing industrial efficiency and output; and most

important, in changing attitudes. We too are creating a

brighter and more challenging future for our people. The

most basic principle which both our Governments are applying

is courage to be objective in analysing problems.

As you

would put it: to seek truth from facts.

When I last came to China, the question of the future

of Hong Kong was a problem to be resolved between us. Here

too, we had to face change. The negotiations to a successful

conclusion we mark today have not only resolved this problem

and given solid grounds for confidence to the people of Hong

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