XN000022-1984-09-26 — Page 14

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WONYSDAY, SEPTEMBER 26, 1984

SECOND, WE HAVE ENSHRINED THE RESULT OF OUR NEGOTIATIONS IN AN INTERNATIONAL AGREEMENT, BINDING IN ALL ITS PARTS. THE POLICIES RECORDED IN THE AGREEMENT WILL BE STIPULATED IN THE BASIC LAW OF THE HONG KONG SAR TO BE PASSED BY CHINA'S NATIONAL PEOPLE'S CONGRESS AND WILL BE THE BASIS ON WHICH HONG KONG WILL BE RUN FOR 50 YEARS AFTER 1997.

THIRD, THE ADMINISTRATION OF HONG KONG WILL BE IN LOCAL HANDS. IT WILL HAVE AN EXECUTIVE ACCOUNTABLE TO AN ELECTED LEGISLATURE; ITS EXISTING LEGAL SYSTEM WITH A COURT OF FINAL APPEAL IN HONG KONG A PUBLIC SERVICE ON PRESENT LINES AND ITS OWN FINANCES.

FOURTH, HONG KONG WILL BE ABLE TO CONTINUE AS A WORLD COMMERCIAL, FINANCIAL AND COMMUNICATIONS CENTRE. IT WILL BE RESPONSIBLE FOR ITS OWN EXTERNAL TRADE. IT WILL RETAIN ITS OWN CURRENCY, THE HONG KONG DOLLAR. THERE WILL BE NO EXCHANGE CONTROL: INVESTORS WILL BE FREE AS NOW TO MOVE THEIR CAPITAL IN AND OUT. THE FUTURE SPECIAL ADMINISTRATIVE REGION WILL BE ABLE TO PARTICIPATE IN AGREEMENTS LIKE THE GENERAL AGREEMENT ON TARIFFS AND TRADE. IT WILL MAKE ITS OWN SHIPPING POLICY AND ENJOY A SIGNIFICANT DEGREE OF AUTONOMY IN CIVIL AVIATION MATTERS. IN SHORT HONG KONG WILL BE ABLE TO PLAY THE DISTINCTIVE, DYNAMIC ROLE THAT IT PLAYS TODAY. IT IS IMPORTANT THAT HONG KONG'S TRADING PARTNERS AROUND THE WORLD RECOGNISE THAT.

FINALLY, THE QUESTION WHICH MANY ARE ALREADY ASKING IS HOW CAN YOU BE SURE THAT THE AGREEMENT WILL WORK AND THAT BOTH SIDES WILL IMPLEMENT IT. THE SIMPLEST ANSWER IS THAT THIS IS A FORMAL, LEGALLY BINDING AGREEMENT, THE HIGHEST FORM OF COMMITMENT THAT CAN BE ENTERED INTO BETWEEN TWO SOVEREIGN STATES. BOTH THE BRITISH AND CHINESE GOVERNMENTS TAKE PRIDE IN THEIR IMPRESSIVE RECORD FOR OBSERVING INTERNATIONAL AGREEMENTS. MOREOVER THE AGREEMENT TAKES PROPER ACCOUNT OF THE INTERESTS OF BOTH SIDES, INCLUDING THE ENORMOUS INTERESTS THAT BRITAIN AND CHINA SHARE IN HONG KONG'S CONTINUATION AS THE DYNAMIC SOCIETY IT IS TODAY.

+THIS IS A SOCIETY THAT THE PEOPLE OF HONG KONG HAVE THEMSELVES CREATED. ITS FUTURE DEPENDS MAINLY ON THEIR TALENT, THEIR INDUSTRIOUSNESS AND THEIR CONFIDENCE. IT IS THEY WHO HAVE MADE HONG KONG THE THIRD BIGGEST FINANCIAL CENTRE IN THE WORLD, THE WORLD'S THIRD BIGGEST CONTAINER PORT AND AN ECONOMY WITH ONE OF THE MOST CONSISTENTLY RAPID RATES OF GROWTH. THEY ARE NOW BEING ASKED TO JUDGE THIS AGREEMENT FOR THEMSELVES.

+1 WILL BE HAVING ANOTHER MEETING WITH FOREIGN MINISTER WU XUEQIAN LATER THIS MORNING. FOR BOTH OF US TODAY MARKS THE END OF MANY MONTHS OF INTENSIVE NEGOTIATIONS IN WHICH WE HAVE BEEN VERY PERSONALLY INVOLVED. IT ALSO MARKS THE BEGINNING OF A MUCH LONGER PERIOD, OF COOPERATION BETWEEN THE BRITISH AND CHINESE GOVERNMENTS, ON THE BASIS OF STILL CLOSER AND WARMER RELATIONS, TO ENSURE THE BEST POSSIBLE CONDITIONS FOR HONG KONG'S ENTRY INTO THE 21ST CENTURY.

/+CXIS AGREEMENT