XN000022-1984-04-20 — Page 2

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FRIDAY, APRIL 20, 1984

+! WANT TO EMPHASISE THAT THROUGHOUT THE TALKS WE HAVE KEPT IN CLOSE CONTACT WITH THE GOVERNOR AND WITH THROUGH MEMBERS OF THE EXECUTIVE COUNCIL. THROUGH THEM, THE LEGISLATIVE COUNCIL. AND THROUGH VISITS TO HONG KONG BY BRITISH MINISTERS (MOST RECENTLY BY MR. LUCE), WE HAVE KEPT IN TOUCH WITH A WIDE RANGE OF OPINION HERE. THE HOPES AND ASPIRATIONS OF THE PEOPLE OF HONG KONG HAVE BEEN VERY MUCH IN OUR MINDS. OUR CHIEF CONCERN HAS BEEN TO PRESERVE THE WAY OF LIFE OF HONG KONG, A WAY OF LIFE WHICH LIES AT THE HEART OF THE TERRITORY'S SUCCESS. WE KNOW THAT THE PRESERVATION OF THAT WAY OF LIFE DEPENDS UPON CONTINUITY: CONTINUITY IN THE ESSENTIALS OF THE LEGAL, ECONOMIC, SOCIAL AND ADMINISTRATIVE SYSTEMS, AND MAINTENANCE OF THE FREEDOMS THAT PEOPLE IN HONG KONG NOW ENJOY.

+I SPOKE ABOUT THIS IN A DEBATE IN THE HOUSE OF COMMONS ONLY A FEW WEEKS AGO. I POINTED OUT THEN THAT CONTINUITY IN HONG KONG IS AT PRESENT ASSURED BY BRITISH ADMINISTRATION. THE TERMS OF AN AGREEMENT BETWEEN THE BRITISH AND CHINESE GOVERNMENTS STILL HAVE TO BE WORKED OUT. BUT IT IS RIGHT FOR ME TO TELL YOU NOW THAT IT WOULD NOT BE REALISTIC TO THINK OF AN AGREEMENT THAT PROVIDES FOR CONTINUED BRITISH ADMINISTRATION IN HONG KONG AFTER 1997. FOR THAT REASON, WE HAVE BEEN CONCENTRATING ON OTHER WAYS OF SECURING THE ASSURANCES NECESSARY FOR THE CONTINUITY OF HONG KONG'S STABILITY, PROSPERITY AND WAY OF LIFE,

+1 BELIEVE THERE IS A BASIS ON WHICH THIS CAN BE ACHIEVED. THE CHINESE GOVERNMENT HAVE MADE IT CLEAR PUBLICLY THAT THEY RECOGNISE THE SPECIAL CIRCUMSTANCES OF HONG KONG, AND THAT THEY WANT ITS SOCIAL AND ECONOMIC SYSTEMS AND LIFESTYLE IN MANY WAYS SO DIFFERENT FROM THOSE OF MAINLAND CHINA- TO REMAIN UNCHANGED. WE SHARE WITH THE CHINESE GOVERNMENT THE STRONGEST POSSIBLE COMMON INTEREST IN THAT OBJECTIVE. OUR APPROACH TO THE TALKS HAS, THEREFORE, BEEN TO EXAMINE WITH THE GOVERNMENT OF CHINA HOW IT MIGHT BE POSSIBLE TO ARRIVE AT ARRANGEMENTS THAT WOULD SECURE FOR HONG KONG, AFTER 1997. A HIGH DEGREE OF AUTONOMY UNDER CHINESE SOVEREIGNTY, AND THAT WOULD PRESERVE THE WAY OF LIFE IN HONG KONG, TOGETHER WITH THE ESSENTIALS OF THE PRESENT SYSTEMS.

+WITH THIS IN MIND, THE BRITISH GOVERNMENT'S OBJECTIVES ARE CLEAR: A FRAMEWORK OF ARRANGEMENTS THAT WILL PROVIDE FOR THE MAINTENANCE OF HONG KONG AS A FLOURISHING AND DYNAMIC SOCIETY; AND AN AGREEMENT IN WHICH THESE ARRANGEMENTS WILL BE FORMALLY RECORDED.

+ I BELIEVE