ROZANT(2)

}

JOINT DECLARATION

HMG SHOULD REFUSE TO HAND HONG KONG BACK IN 1997

Lease

Remainder not

Cannot ignore historical and geographical realities.

92% of territory reverts to China.

expires in 1997.

viable on its own.

-

Any viable future for Hong Kong must be based on co-operation and

co-existence with China, not confrontation. We have always sought

to secure Hong Kong's continued prosperity in this way.

HMG SHOULD RENEGOTIATE THE JOINT DECLARATION

Joint Declaration remains cornerstone of our policy. Best thing

we can do for confidence and stability in Hong Kong is to reaffirm

our strong commitment to Joint Declaration.

Joint Declaration is a very good agreement for Hong Kong.

Important thing is to hold China to its obligations under it.

If we were to try to renegotiate it, cannot be sure that we would

get better terms.

HMG SHOULD SUSPEND CONTACTS WITH CHINA OVER HONG KONG

-

Have announced some immediate bilateral measures. Would not

exclude further measures if circumstances justify this.

In practice cannot see how in present circumstances we can engage in discussions with Chinese about implementation of Joint

Declaration

But in longer term must continue to press for best possible

arrangements for Hong Kong. This will require continued contacts.

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