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"Before 1997, we still have the responsibility of sovereignty. We shall continue to defend, and defend actively and constructively, the values and institutions which are incorporated and described in the legal prose of the Joint Declaration."

The Governor said while Britain's sovereign responsibilities end beyond then, her moral responsibilities would continue - a responsibility to assess what happens in Hong Kong scrupulously against the provisions of the treaty.

"Had we not recognised that responsibility, had China not recognised that we have that responsibility, there would frankly have been no point at all in the Joint Declaration. We would simply have packed our bags, made our excuses and left," he added.

The Governor said moral responsibility apart, Britain had a huge economic and political interest in Hong Kong's continued success as well, citing the vast investment by Hong Kong people in the United Kingdom and Britain's massive stake in the territory.

"Whether Hong Kong succeeds or fails matters to Britain's and indeed Europe's future in Asia, and will have a vital impact on our economic and political prospects there," he said.

Mr Patten said he was "warily optimistic" about the future of Hong Kong because "it is so massively in China's interest that things should go well".

"Chinese officials must recognise that continued success in Hong Kong, China's richest city, its bridge to the world, the source of most outward reinvestment, is crucial to the future well-being of China.

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from "Most of the major issues that China will face in the next few years sustaining a high growth rate to entering the WTO will be easier to tackle if the transition goes well in Hong Kong and more difficult if it does not," said the Governor.

End

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