4

- We could not ignore that legal obligation.

But nor did we simply accept that nothing

could be done to secure the preservation of

Hong Kong's economic prospects and capitalist

way of life. Far from it. We went for the

difficult option. With almost no cards in our

hand, we negotiated, over two years, an

international agreement to enable Hong Kong to

continue essentially unchanged for fifty years

beyond 1997.

1982

When I started the negotiations in 1983, there

was precious little to be optimistic about.

The Chinese had made it clear, publicly and

privately, that they intended to recover

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