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rights and obligations affecting Hong Kong; and in due course to
help bring about a smooth transition in 1997.
6. If the agreement is to be made to work, a task of particular
importance will be the drafting of the Basic Law. Considerable
part of substance of Basic Law already determined in agreement and
its first annex. But there is more. You aware of active concern in
Hong Kong about Basic Law and its drafting. Greatly appreciated
your statement to Hong Kong Government delegation that when time
came to draft Basic Law Chinese Government would solicit opinion
from wide range of people in Hong Kong. Basic Law will be as
important for maintenance of confidence in Hong Kong as agreement itself. Vital to get it right. Will have to be right for
capitalist system which
system which to be maintained there. Courts in Hong Kong will have British legal system which, under agreement, to be maintained in the Special Administrative Region. They must be able
to understand Basic Law.
7.
Agreed that until 1997 Britain will have full responsibility
for Hong Kong. Can give you personal assurance that will be
administered prudently and with foresight, in best interests of Hong Kong people.
8. Know fears have been expressed that stability and prosperity may not be maintained during remaining years of British administration in Hong Kong. Can assure you that preserving these features of Hong Kong life our highest aim. The Hong Kong Government well aware of risks of social instability and will guard against them. Financial management will be prudent and cautious as
ever. Hong Kong already has full control over budget and exchange
fund, as will have after 1997. Land leases will be dealt with in
accordance with Joint Declaration, which establishes joint
commission of Chinese and British officials to oversee matter.
9. Britain derives no direct revenue from Hong Kong, and has no intention of doing so in next 12 years. Overriding objective is to
ensure that Hong Kong can pass through the transition to new status as smoothly as possible without weakening of confidence or flight of
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