But

this absorbed into

does not

Mehu

that Hong hong will

be

socialist

Chira.

5

6.

40

Despite Fanty. Continuing to sheve fschoss every sign

schows every sign of staring

Fortunately, for Britain and Hong Kong China shares our desire to negotiate a transition preserving the cultural, political and

economic identity of the colony The Sino-British Joint Declaration of 1984 was a major achievement which established the basis for Hong

Kong's future. It is a binding international agreement, registered,

Special with the United Nations, Won

specifies that Hong Kong, as a largely autonomous Administrative zone of China, will have its own

government; preserve its capitalist system for at least fifty years; retain its human rights, laws, legal system, convertible currency, financial markets and free port. We have since made good progress on the details through the patient work of the Joint Liaison Group.

MA

S

The

Despite, or rather because of, Tiananmen Square, we have a clear

duty to uphold and consolidate these achievements Tiananmen Square

certainly damaged both confidence in Hong Kong and the credibility

of the Chinese government. But I do not accept that it necessarily call into question Chinese adherence to the Joint Declaration.

People's Republic of China has never before broken such an

international agreement, and in the last year they have frequently

reaffirmed their commitment to the concept of "one country, two

systems" China's serious intent has been demonstrated by the work

they have put into the recently promulgated Basic Law. In its

fifth and eleventh articles this clearly states that socialism will

*

not be extended to Hong Kong for at least traff a century. In recent evidence

prospects of Hong Kong lasting filly years are consicherably better than those of so

socialism]

the

China also has a massive economic stake in preserving the amazing phenomenon of Hong Kong. It is a vital source of hard currency and economic en ry for the mainland. Real growth over the last ten years, even in the shadow of political uncertainty, has averaged

over 7%. Per capita GNP - about £7,200 per year is among the highest in the region. This tiny place is the eleventh largest

trading entity in the world. The richer and more confident we leave it, the more Elise it will be to China and the better the

dispensi

prospect for its economic and political freedoms That is why the Hong Kong Government is pressing ahead with the programme of democratisation and the Bill of Rights. And why we are supporting a £10 billion infrastructure project (to redevelop the port

NW6AAF/2

and to

HKG, fully supproved by

us, have anbarked on

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