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DSR 11C (Revised 5/87)

12. Nor have recent events changed the underlying

reality that the Joint Declaration is a good agreement

for China as well as Hong Kong. The firmest guarantee of

any agreement is that it is based on common interest.

China has a massive stake in Hong Kong's continuing

success, both economically and politically. That stake

has not been diminished by recent events.

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In Confidence

13.

These fundamental perceptions form the bedrock of

our thinking as we set out to rebuild confidence. That

is why the Joint Declaration remains the central element

in our work to safeguard Hong Kong's future. But this

does not mean that we can all sit back. We always

recognised that the Joint Declaration was not the end of

the story but the beginning. Since 1985 we have been

engaged in a continuous process of negotiation with the

Chinese through the Sino-British Joint Liaison Group and

other channels, to ensure that the provisions of the

Joint Declaration will be fully implemented.

A vast

amount of hard work has already been done on this.

Now,

after Tiananmen, we shall be working all the harder to

ensure that Hong Kong's future is as secure as the letter

and spirit of the Joint Declaration intend.

14.

But first, China must act to restore faith in its

commitment to its international obligations under the

Joint Declaration. The Chinese have said publicly, and

have assured us privately too, that their policy towards

Hong Kong will not be affected by the recent events and

that they, like we, remain committed to the Joint

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