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Basic

Law and will

ensure

Agreement mak es absolutely

that it does not conflict.

clear that socialist system

and policies practised on mainland will not be practised in Hong Kong after 1997.

Bill of Rights?

5.

Agreement provides explicitly for maintenance of rights and freedoms previously in force in Hong Kong and protected by law. Stipulates also that provisions of relevant international covenants will remain in force.

All this to be enshrined in Basic Law and remain unchanged for 50 years.

The Falkland Islanders have received British citizenship: why not the Hong Kong people?

6.

The constitutional, historical and geographical circumstances are quite different. Hong Kong people who are British Dependent Territories citizens on the date of Hong Kong's change of status will, if they wish, retain BN (O) status after that date which will entitle them to

continue to use British passports. The two cases are

different for historical, legal and other reasons.

Validity of Treaties

7.

The position of the United Kingdom has always been that the three treaties are valid. The People's Republic of China disputes that

that view. The draft agreement does not resolve this difference of opinion and it has been set aside. The agreement provides for the restoration of

Hong Kong to the People's Republic of China with effect from 1 July 1997, and for HMG

and for HMG to be responsible for the

administration of the territory before that date.

Whatever the status of the three treaties may have been

prior to that date it is clear that thereafter they can

no longer have any application. They are a part of

history but we shall now look forward to the

implementation of the agreement rather than dwell on the

past.

CONFIDENTIAL

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