SECURITY CLASSIFICATION

Top Secret

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Confidential

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DSR 11C (Revised 5/87)

emigration, for a variety of reasons. But it is also the

case that many Hong Kong people subsequently return

Hong Kong. We are committed to the preservation of Hong

Kong's freedoms and life-style, thereby maintaining an

environment in which people will continue to want to make

their lives.

Unclassified

PRIVACY MARKING

In Confidence

You refer to views and pressures from the Chinese

authorities. It is surely right that we should take

account of the historical and geographical realities

which have always determined Hong Kong's development.

These will apply after 1997, just as they have applied in

the period of British administration. We attach

considerable importance to achieving a high degree of

institutional continuity in 1997, which is clearly in the

interests of a smooth transition. But this does not mean

that we have in any sense abrogated our responsibility

for Hong Kong or allowed ourselves to be deflected from

the path which we believe to be right. In particular, on

the question of the Basic Law for post-1997 Hong Kong, we

have the right to satisfy ourselves that its eventual

provisions fully and accurately reflect the Joint

Declaration.

I repeat: Britain will continue to adminster Hong

Kong wisely and well until 1997 and in the best interests

of all its people. It is a solemn responsibility which

we will discharge to the best of our ability.

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