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MOMBAY, SEPTICKER 30, 1985

BRITAIN'S ROLE IN EXERCISING AUTHORITY

THE FIRST THING THAT MUST BE ENSURED IS BRITAIN'S EFFECTIVELY AND MANIFESTLY EXERCISING ITS RESPONSIBILITY FOR ADMINISTERING HK UP TO JUNE 1997. THIS RESPONSIBILITY IS FORMALLY ENSHRINED IN ARTICLE IV OF THE J.D. AND IT AUGURS WELL THAT CHINA, ON A NUMBER OF OCCASIONS OVER THE PAST MONTHS, HAS STATED PUBLICLY THAT THIS RESPONSIBILITY CLEARLY RESTS WITH BRITAIN. ANY DEVIATION FROM THE TERMS OF THE J.D. WILL RESULT IN INVESTMENT AND THE PROFESSIONAL AND SKILLED GROUPS ON WHOM HK'S SUCCESS SO LARGELY DEPENDS BEING FRIGHTENED AWAY. THE EARLY NINETIES WILL ALMOST CERTAINLY SEE A NEW PERIOD OF UNCERTAINTY AND WE SHALL HAVE TO HAVE WELL THOUGHT OUT AND FIRM PLANS FOR THE CHANGES WHICH WILL THEN NEED TO BE INTRODUCED. THERE ARE MANY FACTORS WHICH WILL CONTRIBUTE TO THE SUCCESS OF THIS -- ABOVE ALL WILL BE THE UNDERSTANDING AND RELATIONSHIP BETWEEN THE BRITISH AND CHINESE GOVERNMENTS, WE SHALL IN SHORT HAVE TO DO ALL WE CAN TO PRESERVE THE STABILITY AND ECONOMIC SUCCESS OF HK FOR THAT IS THE PRIME FACTOR IN SECURING ITS SPECIAL STATUS.

CHINA'S ROLE

THE RESULTS OF THE PLENARY SESSION OF THE CHINESE COMMUNIST PARTY CENTRAL COMMITTEE FOLLOWED BY THE NATIONAL PARTY CONFERENCE BETWEEN 16-23 SEPTEMBER ARE VERY SIGNIFICANT FOR HONG KONG AND INDEED FOR THE REST OF THE WORLD. THE WAY IS NOW CLEAR FOR NUMEROUS YOUNGER MEN AND WOMEN, WHO ACCEPT AND SUPPORT THE POLICIES INTRODUCED BY DENG XIAOPING, TO TAKE OVER LEADING APPOINTMENTS IN CHINA. THEY HAVE BEEN DESCRIBED AS A 1 000 WHO HAVE BEEN WAITING IN THE WINGS. THIS IS A CULMINATION OF A SIMILAR SHAKE- UP IN THE PROVINCIAL LEADERSHIP OVER THE PAST TWO YEARS NOW REPORTED TO BE COMPLETE,

ALL THIS IS VERY SIGNIFICANT IN THE CONTEXT OF CHINA'S EVIDENT INTEREST IN MAINTAINING A SUCCESSFUL AND STABLE HK. THIS INTEREST HAS BEEN STATED BY CHINESE SPOKESMEN ON NUMBEROUS OCCASIONS AND THE SUBSTANCE OF THE AGREEMENT UNDERLINES THIS.

THE MANNER IN WHICH THE AGREEMENT HAS BEEN DRAWN UP, SIGNED AND REGISTERED IN THE U.N. MAKES IT A BINDING INTERNATIONAL ACCORD. CHINA'S REPUTATION FOR STICKING TO ITS AGREEMENTS IS SOUND.

HK GOVERNMENT'S ROLE

THE THIRD ESSENTIAL IS THAT THE AUTHORITY OF THE HK GOVERNMENT (AS OPPOSED TO H.M. GOVERNMENT) MUST BE MAINTAINED. IT MUST NOT BECOME A +LAME DUCK+ GOVERNMENT. ITS PROGRAMMES – ECONOMIC AND SOCIAL MUST BE CLEARLY DIRECTED TOWARDS THE SOUND PROGRESS OF LIFE IN HK. IN THE EARLIER MONTHS OF THIS YEAR SOME FEARS WERE EXPRESSED THAT THE CHINESE WOULD USE THE LAND COMMISSION AND THE JLG TO INTERVENE IN HK'S AFFAIRS DURING THE TRANSITION PERIOD. THERE HAS BEEN NO INDICATION OF THIS. IN EXERCISING ITS AUTHORITY EFFECTIVELY THE HK GOVERNMENT HAS TO RELY ON A CIVIL SERVICE AND A POLICE FORCE CAPABLE OF WORKING EFFICIENTLY. MORALE IS OF PRIME IMPORTANCE AND THIS WILL NEED CLOSE MONITORING.

/CCHSTITUTIONAL DEVELOPMENT

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