03-SEP-1991 07:08

JAMES LEE

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MEMORANDUM OF

PREMIER LI PENG/PRIME MINISTER MAJOR

UNDERSTANDING PEKING - 3 SEP 91 2

P.03

in the past, continue to earnestly abide by and fully implement

the Sino-British Joint Declaration on the question of Hong Kong

and is committed to closer consultation and cooperation with the

United Kingdom on that basis. We are convinced that in the

second half of the transitional period of Hong Kong, as long as

our two sides enhance mutual trust, consult fully with each other

in a spirit of mutual understanding and mutual accommodation and

intensify cooperation in compliance with the spirit and provisions

of the Joint Declaration, the smooth transfer of government in

Hong Kong in 1997 can be fully guaranteed and the prosperity and

stability of Hong Kong truly maintained. In this regard, the

Chinese and the British sides share a common interest. We have

every reason to be fully confident of the prosperity and stability

of Hong Kong.

The Chinese Government always attaches importance to long-term

stable relations of friendship and cooperation with the United

Kingdom. True, the two countries are different in social system,

history, culture, heritage and values but these differences should

not become obstacles to the development of our bilateral

relations; recognising and respecting them and striving to seek

common ground while putting aside the differences, we can be

friends. We believe that there exists a solid foundation for

maintaining and developing good relations between our two

countries. Hong Kong is one question that binds us together.

Both China and the United Kingdom are Permanent Members of the UN

Security Council with major responsibilities in international

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