understandably profound impact on opinion in Hong Kong. They generated a strong demand that we should cater more fully for the political, as well as for the economic, aspirations of Hong Kong people. In September 1991 the first direct elections were

held for 18 seats in the Hong Kong Legislative Council. The

results confirmed the wish of Hong Kong people for more

democracy.

This was the position when Mr Patten arrived in Hong Kong last summer. After taking a wide spectrum of advice, Mr Patten

produced a carefully judged package of proposals for the 1995

elections. He had to take account of the feeling in Hong Kong,

as well as the likely views of the Chinese Government. The

British Government fully support these proposals.

We

One of China's recent accusations has been that in putting forward these proposals Britain is in some way trying to deny China's right to resume sovereignty over Hong Kong in 1997.

This is of course nonsense. The Joint Declaration, an agreement

signed by the British and Chinese Governments in 1984, sets out quite clearly that Hong Kong will revert to Chinese sovereignty in July 1997, and the terms on which this is to take place.

remain fully committed to implementing this agreement. We want

to cooperate with China in doing so. The Joint Declaration enshrines the imaginative principle, originated by Mr Deng

Xiaoping, of "one country, two systems". That means that

Hong Kong and China will become one country under Chinese

sovereignty, but that Hong Kong will retain its existing economic, social and legal system, its unique way of life, and

be allowed "a high degree of autonomy" in running its own

affairs. This includes (in Article 50 of the Joint Declaration) the right to elect its own legislature. So there is nothing new

in that.

goodlad.speech.PR.JRB

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