THE JOINT DELCARATION IS OF THE HIGHEST SIGNIFICANCE TO

OUR TWO GOVERNMENTS AND PEOPLES.

NEGOTIATIONS (NEXT WORD UNDERLINED) BEGAN ON THE

BASIS OF THE COMMON AIM FOR HONG KONG, AGREED WHEN

I MET CHAIRMAN DENG XIAOPING IN 1982. THEY WERE

(NEXT WORD UNDERLINED) SUSTAINED, DESPITE SOME DIFFICULT

MOMENTS, BY AN UNDERLYING SENSE THAT TRUST AND UNDERSTANDING WERE

GROWING BETWEEN US. THEY (NEXT WORD UNDLINED ) TODAY IN

A REAFFIRMATION OF OUR CONVICTION THAT

BRITAIN AND CHINA CAN WORK EVEN MORE CLOSELY

TOGETHER IN THE FUTURE- FOR HONG KONG, FOR OUR TWO PEOPLES,

AND FOR INTERNATIONAL UNDERSTANDING AND PROSPERITY.

THERE ARE, OF COURSE, GREAT DIFFERENCES BETWEEN OUR TWO

SOCIETIES.

BUT WE ALSO HAVE MUCH IN COMMON. NO CIVILISATION HAS A GONGER

HISTORY THAN CHINA'S.

IN BRITAIN WE TOO HAVE A GREAT SENSE OF HISTORY.

BOTH OUR PEOPLE ARE TALENTED AND INVENTIVE.

THE INVENTION OF PRINTING IN CHINA IS SO BASIC TO WORLD

CIVILISATION THAT WE TAKE IT FOR GRANTED.

AND THE PRODUCTIVE IMPULSE SET OFF BY BRITAINS INDUSTRIAL REVOL-

TION IS STILL REVERBERATING AROUND THE WORLD. PROGRESS, INDUSTRIAL

OR SOCIAL, MEANS CHANGE.

SUCH CHANGE IS NEVER EASY. THE SENSE OF HISTORY AND CULTURAL DEPTH

WE BOTH ENJOYHAS GIVEN OUR SOCIETES A GREAT SENSE OF

PURPOSE. WITH IT, WE CAN TACKLE CHANGE CONSTRUCTIVELY.

WE MUST PRESERVE THE BEST OF THE PAST IN BUILDING

THE FUTURE.

IN THAT SPIRIT WE WELCOME THE CHALLENGE OF NEW TECHNOLOGY

AND WILL MAKE SURE OUR PEOPLE WILL ENJOY ITS BENEFITS.

BOTH OUR COUNTRIES HAVE CHANGED IN THE SEVEN YEARS

SINCE MY FIRST VISIT HERE. AND CHANGED FOR THE BETTER.

IN CHINA, A NEW ATMOSPHERE OF CONFIDENCE AND DYNAMISM

HAS BEEN REFLECTED IN STEADY ECONOMIC GROWTH OVER

THE LAST FIVE YEARS AND INCREASED

OPENING TO THE OUTSIDE WORLD. IN AGRICULTURE, YOU HAVE HAD

CONSECUTIVE RECORD HARVESTS FOR THE LAST FIVE YEARS:

CHINA IS NOW THE WORLD'S FOREMOST GRAIN PRODUCER.

THESE ARE THE FIRST FRUITS OF THE REFORMS WHICH YOU HAVE

INSTIGATED. 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 IMPORANT,

IN CHANGING ATTITUDES.

WE TOO ARE CREATING A BRIGHTER AND MORE CHALLENGING FUTURE FOR

OUR PEOPLE. THE MOST BASIC PRINCIPLE WHICH BOTH OUR GOVERN-

MENTS ARE APPLYING IS COURAGE TO BE OBJECTIVE IN ANALYSING

PROBLEMS AS YOU WOULD PUT IT, TO SEEK TRUTH FROM FACTS.

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