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Delegation for Democracy. Somebody must mention these allegations, because Her Majesty's Government have been accused, in plain terms, of breaking their promises. That is a serious accusation, and I asked Mr. Lee how he substantiated that accusation. I asked him to quote the words on which he was relying. He was unable to find any words to that effect. The closest that he could get was to refer to undertakings about the development of representative government. That has happened, and Mr. Lee is an example of the development of representative government.

Mr. Lee referred to a 1984 report which said that a substantial section of opinion was in favour of direct elections in 1988, but he could not point to a promise by Her Majesty's Government that there would be direct elections in 1988. I hope that this accusation will not be repeated. It is unjust. It is unwise for the Delegation for Democracy to make that accusation, because it reduces its credibility. The people who know about these matters

that the accusation is not true. kr

accusation generates an atmosphere of acrimony, which is highly undesirable. What is more, it is deeply offensive. I was born in Hong Kong. I have followed the events there for decades, and have done so especially closely in recent years. I have followed the statements, and I know that there has been no such statement by Her Majesty's Government. I hope that we have heard the last of that accusation.

Thirdly, what should be the attitude of the Hong Kong people towards China? I understand their nervousness. They did not want to be transferred to the sovereignty of China. China is enormous, and Hong Kong is tiny. China has a Communist system which the people of Hong Kong do not want, but I ask the Hong Kong people to look at the pluses. There is what is generally agreed to be an excellent joint declaration, which was made in 1984 and gives the Hong Kong people all the freedoms that they could possibly want. That international agreement is registered with the United Nations. It gives the Hong Kong people a guarantee of freedom from Socialism for 50 years after 1997—something that I should be happy t e in this country, where we do not enjoy such a guarantee. We see that China is carrying out its obligations. My right hon. and learned Friend the Foreign Secretary referred to the excellent work of the Sino-British Land Commission, which has been carried out har- moniously. Hong Kong has been independently accepted by various international economic and cultural organisa- tions. Harmonious and constructive work has been carried out by the Joint Liaison Group.

If I had been asked a few years ago whether it was conceivable that there would be a committee drafting the Basic Law of Hong Kong under the aegis of the People's Republic of China, and that virtually half the members of that committee would be from Hong Kong, I should have been astonished, but the Basic Law Drafting Committee exists. I should have been astonished also at the idea of the Basic Law Consultative Committee, which consists, I believe, entirely of Hong Kong people and is advising the Basic Law Drafting Committee. If I had been told that all the drafting committee's activities would be conducted virtually in public, I should have been amazed. Everyone knows what the committee is talking about. Its discussions are immediately reported in the press. This is one of the most intense, thorough consultations that I have seen in 24 years in politics. It is incredible, and it is conducted

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under the aegis of the Chinese Government, of whom some hon. Members are so suspicious. That is really what those hon. Members are saying when they call urgently for a move to direct elections this year, that they are suspicious of China.

The attitude adopted by the Delegation for Democracy is mistaken. It is a confrontational posture, which is unwise. I do not think that it will help in the development of true co-operation. Part of the loss of confidence in the future by the people of Hong Kong, which some recent opinion polls say exists may be due to the activities of the Delegation for Democracy, which is causing fear-

Mr. Robert G. Hughes: This is shameful. Sir Peter Blaker: I agree that it is shameful.

Mr. Robert G. Hughes: No, what my right hon. Friend is saying is shameful.

Sir Peter Blaker: My hon. Friend may have an opportunity to speak later. I hope that he will, and I shall listen with close attention.

The people of Hong Kong face a difficult process of adjustment, but what is the picture from the Chinese side? It is worth while the people of Hong Kong asking themselves that question. China has agreed to the joint declaration. It is an enormous step for China to take to accept the one country, two systems concept. Hong Kong will continue to be run by the Hong Kong people in a capitalist manner for 50 years after 1997. China is honouring the agreement. It is continuing to honour the agreement because that is in China's interest. Hong Kong is of immense value to China as it is- ·a capitalist, thriving, prosperous territory which will bring China great wealth and technology.

Hong Kong is China's open door on the world. Therefore, the Chinese are having to make enormous adjustments. They are learning about capitalism. We have seen the assistance that the Bank of China gave a few weeks ago in rescuing the Hong Kong future's market. I remember when Hu Yao Bang was relieved of his post I think last year. It caused great concern in Hong Kong. China purchased a large share in Cathay Pacific. I do not know whether that was a conicidence, but, if it was not, it was a remarkable step. The negotiation was conducted at great speed and helped to stabilise confidence in Hong Kong. That is in great contrast to 1984 when the Hang Seng index fell dramatically during a difficult phase of the negotiations that we were conducting with China and the Chinese put it down to Britain playing the economic card. Would that one could manage the Hang Seng index as easily as that!

Having learnt a great deal about capitalism, China is a concept learning about representative government foreign to the Government and people of China. The questions are not simply: what will China do for Hong Kong and what will be the effect of China on Hong Kong? The question is also: what effect will Hong Kong have on China? The question which we should debate is much bigger than the single one of direct elections in 1988 or in 1991. It is a matter of confrontation or co-operation. I opt for co-operation.

5.27 pm

Mr. Jack Ashley (Stoke-on-Trent, South): I was surprised by the speech of the right hon. Member for Blackpool, South (Sir P. Blaker). The House respects his

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