CONFIDENTIAL

5 -

There could be some parliamentary questioning of why it is

to legislate SO far in

necessary

advance for the termination of

of sovereignty.

The answer is that we need to legislate SO that we can ratify the

why we negotiated and concluded an agreement

agreement.

The reason

now rather than closer to 1997 was to give Hong Kong the certainty

that it needed if stability and prosperity were to be maintained and

if planning for the future was

be possible. The date on which

the termination of sovereignty will take place is known and is not a

matter for any further negotiation. There is therefore no reason to

avoid including the necessary provisions in the Bill.

uncontroversial

in

in

the House of

the Second Reading in the

Commons,

This clause proved to be

and no opposition to it was expressed

House of Lords.

CONFIDENTIAL

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