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Have also made clear to Chinese on many occasions importance of Basic Law which reflects Hong Kong people's views. Although Basic Law has not been universally welcomed in Hong Kong, a number of amendments were made in response to Hong Kong representations.

(Stationing of PLA) (If Raised)

Joint Declaration provides for China to station military forces

in HKSAR after 1997 for the purpose of defence. It also stipulates

that those military forces shall not interfere in the internal

affairs of the SAR. We have urged Chinese to take account of Hong

Kong sensitivities in handling this issue.

C: NATIONALITY

Feedback from Hong Kong has reinforced my conviction that the

package is essential component of our policy on Hong Kong. We are

determined to carry this through the House.

(Vulnerables) (If raised)

Made clear in my 20 December statement that package will cater

for those who by virtue of their position may be vulnerable in the

years ahead.

D: RENEGOTIATION OF LEASE (If Raised)

Do not believe that was or would be attainable. Before signing Joint Declaration we negotiated long and hard for arrangements that would permit continued British administration in Hong Kong in some

way after 1997. Chinese Government were adamant that this was out

of the question.

No doubt that present and any future Chinese Government would

take same view of this or similar proposal.

Joint Declaration therefore represents best way forward for Hong

Foreign Affairs Committee in its Report of June last year

Kong.

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