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SEMINAR ON HONG KONG, 3 JULY: SOME INTRODUCTORY REMARKS

General welcome; (?) Chatham House rules.

Where we are now

-

Hong Kong due to revert to China on 1 July 1997, almost

exactly 6 years from now. Terms set out in the

Joint Declaration and the Basic Law Are now embarking on the

second stage of the transition period.

Airport talks have had the effect of bringing forward problems that might otherwise not have arisen so starkly for

another year or so. But sooner or later we would have had to grapple with them.

The next six years

Some difficult and crucial tasks. Chief objectives are to maintain economic prosperity and social stability of

Hong Kong, and to prepare territory for a successful transition in 1997.

Key ingredients will be:

(i)

talks)

(ii)

business confidence (eg importance of the airport

efficacy

4.

authority and .... of the Hong Kong Government (eg civil service morale)

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(iii) attitude of China

- How to manage the Relationship with China: the key to success. Sensible cooperation (UK/China) (HK/China) essential if smooth transition is to be achieved and the SARG to get off to a good start.

GUYAEZ/1

TG

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