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42.

The new and vitally important factor is the agreement between the Governments of the United Kingdom and the People's Republic of China on the future of Hong Kong. That agreement has removed much of the

uncertainty which has affected confidence and investment in the last

three years.

It constitutes a binding commitment on the part of both

governments to foster the stability and prosperity of Hong Kong. I

have no doubt that they will fulfill that commitment, not only because

they are pledged to make the agreement work, but because it is self-

evidently in their interest to do. The reaction of the people of Hong

Kong to the agreement has indicated that they accept it as a basis on

which they can build a successful future. I am confident that they

will do so, and that Hong Kong will continue to be the vibrant and

exciting city that it is today.

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