5. MOST OBVIOUS QUALITY OF HONG KONG IS ITS DYNAMISM. HONG KONG IS A RAPIDLY EVOLVING SOCIETY. IN 40 YEARS SINCE THE 2ND WORLD WAR, HONG KONG HAS DEVELOPED FROM A VIRTUALLY RUINED TRADING POST INTO ONE OF THE WORLD'S MAJOR MANUFACTURING TRADING AND FINANCIAL CENTRES. POPULATION RISEN FROM 600,000 TO 5.3 MILLION. THE ORGANISATION OF GOVERNMENT AND PEOPLE'S ATTITUDES TO IT HAVE ALSO EVOLVED CONSIDERABLY DURING THIS PERIOD. BRITISH RESPONSIBILITY FOR THE ADMINISTRATION OF HONG KONG, WHICH UNDEP ARTICLE IV OF THE JOINT DECLARATION WILL CONTINUE UNTIL 1907, HAS BEEN EXERCISED WITH CARE AND A SENSE OF RESPONSIBILITY. THERE HAS BEEN A PROGRESSIVE PROCESS OF CHANGE IN THE STRUCTURE OF GOVERNMENT IN HONG KONG DURING THIS TIME DESIGNED TO MEET THE RAPIDLY CHANGING NEEDS OF A SOCIETY WHICH HAS UNDERGONE IN 40 YEARS THE KIND OF DEVELOPMENT WHICH TOOK MOST OTHER SOCIETIES WELL OVER A CENTURY TO ACHIEVE.
6. WE ARE COMMITTED TO ENSURE SMOOTH TRANSFEP OF GOVERNMENT IN 1997. IN THE JLG THE CHINESE SIDE EXPPESSED SOME CONCERN ON RECENT DEVELOPMENTS. WOULD LIKE TO MAKE FOUR THINGS CLEAP.
(A) THE FIRST IS THAT THE UNITED KINGDOM IS NOT ABDICATING AND WILL NOT ABDICATE ITS RESPONSIBILITY FOR HONG KONG.
(B) THE SECOND IS THAT THE HMG AND THE HONG KONG GOVERNMENT REMAIN FULLY COMMITTED TO MAINTAINING BOTH THE PROSPERITY AND STABILITY OF HONG KONG.
(C) THE THIRD IS THAT AS THE SECRETARY OF STATE ASSURED MR. WU XUEQIAN IN LONDON IN JUNE WE HAVE BEEN PROCEEDING VERY CAUTIOUSLY AND CAREFULLY IN DECIDING THE MODIFICATIONS WHICH WE HAVE MADE OVER THE LAST 18 MONTHS.
(D) THE BRITISH SIDE RECOGNISES THE IMPORTANCE OF ACHIEVING CONVERGENCE OF 1DEAS ABOUT REFORM TO GOVERNMENT STRUCTURE FOR HONG KONG BEFORE 1997 AND IDEAS OF GOVERNMENT STRUCTURE OF THE SAR
POST-1997.
7. WE ARE ACCORDINGLY VERY PLEASED THAT IT HAS BEEN AGREED THAT THERE SHOULD BE INFORMAL DIALOGUE BETWEEN THE TWO SIDES WHICH WE BELIEVE WILL BE VALUABLE IN DISPELLING ANY MISUNDERSTANDING ON THESE POINTS.