1988-01-25 18:38 COMMS. OFFICE (GOV'T HSE)

852 5 845 0995

P.05

Another essential fact of life for Hong Kong has

long been our geographical and political

and political position in

relation to China. For many years we have been dependent on Chino for much of our food, and more recently for much

of our drinking water. For nearly four decades we have

known that,

that, if China considered developments here to be

seriously at odds with her own basic national interests.

particular if there

if there were moves which suggested the

establishment of

a "Third China."] Hong-Kong's special

position would be put at risk.

This fact of life, together with the fact of the

1997 lease, has meant that there has always been a limit to

constitutional development in Hong Kong. It has meant, for

instance, that to move towards independence has never been

option for Hong Kong, That is a very

very important

limitation; it has always been well understood by the

people of Hong Kong.

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But an understanding of the constraints imposed by

our geographical and political position has not involved any serious restrictions on our freedom in Hong Kong. This

is self evident, but it is worth reminding ourselves of the

point. Hong Kong has developed on international,

free-market economy, a capitalist lifestyle, a legal system

that protects individual rights and freedoms. It has pursued and protected this way of life through periods when

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