1. After initial courtesies, Chairman Deng thanked the Secretary of State and Prime Minister for their great contribution to a settlement of the Hong Kong question. General de Gaulle had brought about an end to the history of French colonial rule; the same was true of the Prime Minister and the Secretary of State for British colonial rule. The two sides had had very good talks. He was very pleased. Both sides had almost reached agreement. Only some small detailed questions remained unsettled. They would not be difficult to solve. The Secretary of State's talks with Chinese leaders reflected the friendly relations and cooperation between China and Britain. This would further develop. The result of the negotiations would have a very good influence on the world: it would set an example for settling questions left over from history. Many disputes remained to be resolved in the world: the Iran/Iraq war, Afghanistan, Kampuchea, Latin America, the Caribbean, and disputes in different parts of Africa. These disputes could only be solved in a spirit of mutual understanding and mutual cooperation. But it was not easy for other people to resolve similar questions elsewhere in the world.
2.
The Secretary of State said he agreed. Hong Kong was a matter of great importance; one to which the Prime Minister attached much importance. She would be as glad as Chairman Deng that the two sides had been able to make such substantial headway. He also appreciated Foreign Minister Wu's
contribution. He added that negotiations on Hong Kong without Assistant Minister Zhou Nan would be like a Chinese dinner without maotai.
3. The concept of "one country, two systems", was of great importance for the historic enterprise of securing Hong Kong's continued prosperity and stability before and after 1997. Important matters remained to be resolved and embodied in the agreement if they were to ensure that the magnetism of Hong Kong, as an example of the success of the capitalist system, was to be embodied in the concept of one country two systems.
4. Chairman Deng replied that this concept had not come into existence only today but about the time of the Third Plenary session of the 11th Central Party Committee against the background of their desire to solve the Taiwan and Hong Kong questions. There were two ways of solving such questions. Armed force was not a good way. To find a peaceful way full account must be taken of Hong Kong and Taiwan realities. must be respected. China's policy on Hong Kong was to ensure the continuance of the capitalist system there. However, the socialist system would continue to be practiced in mainland China. To achieve the reunification of China the realities of Hong Kong and Taiwan must be taken into account. The systems practiced there should continue. Otherwise prosperity and stability would not be ensured. This would not help a peaceful solution. Thus Hong Kong's current social system and lifestyle
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