SECURITY CLASSIFICATION

Top Secret

Secret

DSR 11C (Revised 5/87)

events. Indeed, as China grapples with increasingly

serious economic problems at home, Hong Kong is more

important to it than ever.

Confidential

Restricted

Unclassified

PRIVACY MARKING

In Confidence

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 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.

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

Declaration.

We naturally welcome that. But words alone

will not be enough. We look to the Chinese authorities

to demonstrate by their actions that they mean what they

say. We shall bring home to the Chinese the immense

damage which their recent policies have inflicted on Hong

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