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discussions with local people. I understand that they were notably accessible, and that they listened most carefully to the views put

to them. A further delegation will come to Hong Kong in September.

15.

And the people of Hong Kong are making their views known clearly and articulately. We for our part are monitoring very closely the public debate in Hong Kong. We are paying careful attention to the points of particular concern which are emerging.

We are continuing our own detailed examination of the text. I can

assure the House that where we conclude tht aspects of the text may

not be consistent with the Joint Declaration, we are not hesitating

to bring these to the attention of the Chinese Government.

a

And

16. There have already been extensive confidential exchanges

between the two sides over the Basic Law. These will continue. we also stand ready to act where appropriate as a channel for views and concerns expressed by bodies and individuals in Hong Kong and

this country. We have formally conveyed to the Chinese Government

the Hansard record of the Debate held in another place on 10 June.

And we shall do the same after today's Debate.

17. As I indicated earlier, the consultation process is still in an

initial phase. The draft is not yet complete. In some areas

options remain to be narrowed down. This is not the time for

the Government to make a definitive appraisal of the draft.

But in Hong Kong some broad areas of concern are clearly emerging;

we have no doubt that the drafters will take these carefully into

account in the next phase of their work.

18. For example:

Much attention has been focussed on whether the Basic Law will

enable the Hong Kong Special Administrative Region to enjoy the high

degree of autonomy provided for in the Joint Declaration. We attach

great importance to ensuring that the Basic Law accurately

reflects the Joint Declaration in this respect. But equally it

must be recognised that a high degree of autonomy is not to be

equated with independence. Sovereignty over Hong Kong will

of course rest with China. It will require the most careful

judgment to get the balance right.

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