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PRIME MINISTER'S VISIT TO ASIA

4-13 APRIL 1985

BACKGROUND BRIEF NUMBER 6 : HONG KONG

A.

THE HONG KONG AGREEMENT

1.

The Agreement on Hong Kong's future which the Prime Minister and

the Chinese Premier Zhao Ziyang signed on 19 December 1984 in Peking marked the outcome of two years of intensive negotiations with the agreed common aim of maintaining Hong Kong's stability and

prosperity. The international community has welcomed the Agreement

as showing how difficult international issues can be resolved

peacefully. Following the initialling of the Agreement on 26 September 1984, statements of support for it were made, inter alia,

by the governments of Malaysia, Singapore, Brunei, Indonesia and

India.

2. We believe that

We believe that the Agreement provides the best possible framework for the continuing stability and prosperity of Hong Kong

up to and after 1 July 1997, when British administrative

responsibility for Hong Kong will cease and Hong Kong will become a Special Administrative Region (SAR) of the People's Republic of

China. As such, it will enjoy considerable autonomy and function

essentially as now.

3.

UK Legislation is necessary to enable us to ratify the Agreement

which states that instruments of ratification shall be exchanged

before 30 June 1985. The Hong Kong Bill has now passed through the

House of Commons and should also have passed through the House of

Lords by the time of the Prime Minister's visit (Third Reading 28

March). The Bill provides for:

The termination of British sovereignty and jurisdiction over Hong

Kong as from 1 July 1997;

subsequent Orders in Council to amend British Nationality Law and

to adapt other laws affecting Hong Kong;

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