CONFIDENTIAL

- 5 -

agreement.

There could be some parliamentary questioning of why it is necessary

to legislate so far in advance

advance for the termination of

the termination of sovereignty.

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

The reason why we negotiated and concluded an agreement

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 to 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.

This clause proved to be

uncontroversial in the House of Commons,

and no opposition to it was expressed in the Second Reading in the

House of Lords.

CONFIDENTIAL

Page 210Page 211

Share This Page