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Not only is there a solemnly binding international obligation on them to do so, but also it is manifestly in their own interests that they should. But it would be folly to pretend that the current violence and uncertainty in China do not affect our work on the joint declaration and Basic Law. Consultations on the latter have already been suspended. We have also made clear to the Chinese Government that under present circumstances it would not be appropriate to continue normal business connected with the implementation of the joint declaration. Accordingly, the next meeting of the Joint Liaison group planned for July has been postponed sine die. We have not acted irresponsibly in this matter, as the Chinese Foreign Ministry has suggested. We will meticulously observe our obligations with regard to consultation laid down in Annex II to the joint declaration.

In deciding the way forward, we must be careful not to sacrifice good judgment for the sake of speed. Nowhere is this more important than in consideration of Hong Kong's future political system. I can see the attraction of the agreement that now is the time to accelerate progress towards fuller democracy. Even before the events of 3rd and 4th June, opinion on this was clearly evolving in Hong Kong. Members called in May for the proportion of directly elected seats in the Legislative Council to rise to 50 per cent in 1997 and 100 per cent by 2003.

If Hong Kong can reach a consensus on faster progress towards representative democracy this would be a significant development to which we should certainly wish to respond. It will be essential that the Basic Law fully reflects the views of the Hong Kong people in this as in all other respects, and that its provisions command their confidence.

But as the Governor pointed out on his visit to London last week, the process of crystalising views in Hong Kong is still far from complete. We should not rush to judgment while the people of Hong Kong themselves are still digesting the issues involved. Our aim is to establish a political system in Hong Kong that we can be confident will work in the run up to 1997 and well beyond. Setting up a system that cannot last would be an abuse of our responsibility. It would be a tragic waste of the opportunity we have been offered.

To talk of continuity is to underline the importance of the Basic Law. It is not clear how suspension of consultations on the second draft of the Basic Law will affect the timetable for producing the final version. The need to get the law right is now more important than ever. After all, that document will translate the joint declaration into a detailed constitution which will protect Hong Kong's special status.

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