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Mr Speaker, Hong Kong, as everyone who knows it will

agree, is the economic success story of a region which

does actually boast several economic miracles.

look across the border into China you see that the

economic success has spread to the neighbouring

province of the mainland.

As you

China is Hong Kong's largest

trading partner and Hong Kong is also one of Britain's

biggest markets in the region.

All that could continue after 1997

are dramatic

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and the plans

or it could be lost. The future of 5.7

million people after 1997 depends on three things:

first the talent and energy of Hong Kong's own people

and they are not in doubt. Second, the attitude of the

Chinese Government. There is much more which they need

to do to reassure Hong Kong. But dialogue has been

re-established and we must do our best to maintain it.

Thirdly, Hong Kong's future success depends on Britain

the responsible sovereign power until 1997.

After last June, this House rightly voiced its support

for Hong Kong, and that of course has to mean more than

words. The people of Hong Kong are realists. For

example, they accept

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though reluctantly

that we

cannot give passports to all. They look to us over the

coming years to take the necessary decisions as the

sovereign power and to follow an active and

understanding policy towards Hong Kong. I hope I

convinced them that we would do so.

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