GENERAL SUPPLEMENTARIES

CONFIDENTIAL

Will the Chinese stick to the agreement?

1.

Chinese leaders made clear during the Prime Minister's visit to

Peking their commitment to implementing the agreement.

Joint

Declaration is formal and binding international agreement. China is

justifiably proud of its record in meeting obligations under

international agreements. Agreement meets interests of both sides.

No reason to think that the Chinese will not honour it.

What if the Chinese breach agreement?

The breach of a legally binding international agreement would be

a most serious matter in our own eyes and no doubt

doubt in those of the

international community as a whole. We would of course make the

2.

to the Chinese

Government in

strongest possible

representations

order to seek a remedy.

If the Chinese breach the agreement could we repudiate it?

3. Yes, but only if it was a material breach, as defined in Article

60 of The Vienna Convention on the law of treaties. There would

have to be a breach by China of a provision essential to the

accomplishment of the object and purpose of the agreement.

Parallels with the Falklands?

Absolutely no parallel. Hong Kong is sui generis in that 92 per

cent of the territory is covered by a lease with a fixed expiry

4

date.

5.

International resettlement of those unwilling to stay in Hong Kong

Our firm intention to make the agreement work and create

conditions in which Hong Kong people will continue living and

working flourishing community. Cannot build with one hand and

pull down with the other.

Participation of Hong Kong people in drafting of Basic Law

6.

Chinese leaders have made it clear that people of Hong Kong will

consulted on drafting of Basic Law. Prime Minister told this

during her visit. Mechanism of that consultation not yet clear.

be

CONFIDENTIAL

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