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HKK 040/15 min Hore 040/15 min

W. Harding.

RECEIV

19FEB 1985 1

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FUTURE OF HONG KONG

.Y

INDEX

PA

Action Tar

POINTS TO MAKE

a

1.

TAX

15/2.

Prime Minister and Premier Zhao Ziyang signed Joint Declaration on 19 December in Peking. Historic agreement. Outcome of two years intensive negotiations.

2. Formal and Legally binding international agreement. Contains a great deal of detail about the systems and arrangements which will prevail in Hong Kong after 1997. British Government believes it provides satisfactory guarantees for the future prosperity and stability of Hong Kong.

3.

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Chinese leaders assured Prime Minister during his visit of their commitment to faithfully implement agreement. We too are firmly commited to carrying out agreement. UK will remain fully responsible for Hong Kong's administration until 1 July 1997.

4.

Under Joint Declaration, ratification of agreement must take place before 30 June 1985. Hong Kong Bill, which will enable UK to: implement agreement, has now passed through the House of Commons and is being considered by the House of Lords.

If raised

Why did United Kingdom enter into negotiation with Chinese Government?

5.

Because lease over New Territories is due to expire on 1 July 1997 and the remaining 8% of territory is not viable on its own. Even without an agreement, the New Territories will revert to China

on that date.

Parallel with Falklands?

6.

The circumstances are not the same. Hong Kong is sui generis in that there is a lease with a fixed expiry date.

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