1988-01-25 18:41 COMMS. OFFICE (GOV'T HSE)

852 5 845 0995 P.10

The issues on which we do consult the Chinese are

those that concern the implementation of the Joint

Declaration and those areas which will be affected by the

change of sovereignty in 1997. This is done in the Joint

Liaison Group which, as its terms of reference make clear,

plays no part in the administration of Hong Kong and has no

supervisory role over the administration.

I think it is also worth saying at this point that

the Joint Liaison Group is a dialogue of equals, in which

the two sides often come to a subject with different

starting positions

positions and,

and, by

by process of consultation

sometimes easy, sometimes arduous reach a solution

acceptable to both. The British team has always based its

position firmly on the needs and interests of Hong Kong and

has always been able to satisfy them. Neither the work of

the Joint Liaison Group nor our relationship with China

generally has resulted in any lessening of the degree of

autonomy which Hong Kong has enjoyed for many years.

also part of this

So much for the relationship with China. It is

administration's duty, during the

transition period, to continue to provide the framework and

the support for the economy which gives real and tangible

expression to the freedoms which Hong Kong people enjoy,

an d whose continuance is provided for in the Joint

Declaration. The very real achievements mode in this area

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