XN000022-1984-09-26 — Page 2

WEDNESDAY, SEPTEMBER 26, 1984

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GOVERNOR'S ADDRESS ON DRAFT AGREEMENT

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FOLLOWING IS THE TEXT OF THE GOVERNOR, SIR EDWARD YOUDE'S ADDRESS IN THE LEGISLATIVE COUNCIL TODAY:

+EARLIER TODAY AN AGREEMENT BETWEEN THE UNITED KINGDOM AND THE PEOPLE'S REPUBLIC OF CHINA WAS INITIALLED ON THE FUTURE OF HONG KONG. IT IS AN HISTORIC AGREEMENT WHICH WILL GOVERN THE FUTURE OF THIS TERRITORY FOR MORE THAN HALF A CENTURY TO COME. IT IS THE OUTCOME OF TWO YEARS OF LONG AND INTENSIVE NEGOTIATIONS. THE OBJECTIVES OF THE NEGOTIATIONS WERE SET OUT AT AN EARLY STAGE. THEY WERE ELABORATED IN SOME DETAIL BY THE SECRETARY OF STATE SIR GEOFFREY HOWE, WHEN HE VISITED HONG KONG IN APRIL THIS YEAR, WHEN HE ALSO SPOKE ABOUT THE POSITION WHICH HAD BEEN REACHED IN THE NEGOTIATIONS. IN AUGUST HE GAVE A FURTHER ACCOUNT OF THE PROGRESS MADE. NEVERTHELESS, THE LENGTH OF THE NEGOTIATIONS, AND THE CONFIDENTIALITY IN WHICH THEY HAVE HAD TO BE CONDUCTED, HAVE IMPOSED A CONSIDERABLE STRAIN ON THE PEOPLE OF HONG KONG WHO HAVE BEEN UNDERSTANDABLY ANXIOUS TO KNOW WHAT ARRANGEMENTS WILL BE MADE FOR THEIR FUTURE. I SHOULD LIKE TO PAY TRIBUTE TO THE RESILIENCE AND FORBEARANCE WHICH THEY HAVE SHOWN DURING THIS DIFFICULT PERIOD.

THE +THE ESSENTIAL PROVISIONS OF THE AGREEMENT ARE THESE. UNITED KINGDOM WILL CONTINUE TO BE RESPONSIBLE FOR THE ADMINISTRATION OF HONG KONG UNTIL JULY 1, 1997. ON THAT DATE CHINA WILL RESUME THE EXERCISE OF SOVEREIGNTY, AND HONG KONG WILL BECOME A SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA WITH A HIGH DEGREE OF AUTONOMY. THE AGREEMENT PROVIDES FOR THE CONTINUATION OF HONG KONG'S UNIQUE SOCIAL, ECONOMIC, LEGAL AND OTHER SYSTEMS FOR 50 YEARS AFTER 1997, AND FOR A SMOOTH TRANSITION TO HONG KONG'S NEW STATUS.

+BEFORE I SPEAK ABOUT THE CONTENT OF THE AGREEMENT, I SHOULD LIKE TO RECALL A FEW BASIC FACTS WHICH FORMED THE BACKGROUND TO THE NEGOTIATIONS AND WHICH SHAPED SOME OF THE PROVISIONS IN THE AGREEMENT ITSELF.

FIRST, THE 1997 DEADLINE WAS A FACT INHERITED FROM HISTORY.

IT EXISTED AND HAD TO BE THE PROBLEM WAS NOT OF OUR MAKING. DEALT WITH. THE NEGOTIATIONS DEMONSTRATED INCONTESTABLY THAT CHINA WOULD NOT AGREE TO THE CONTINUATION OF BRITISH ADMINISTRATION OVER ANY PART OF HONG KONG BEYOND THAT DATE.

SECOND, THE PROBLEM HAD TO BE DEALT WITH NOW. IT WOULD NOT HAVE BEEN RIGHT TO LEAVE THE COMMUNITY OF HONG KONG IN CONTINUING DOUBT ABOUT ITS FUTURE. AND IN AN ADVANCED INDUSTRIAL AND COMMERCIAL ECONOMY LIKE THAT OF HONG KONG, THE DEADLINE WAS BOUND TO CAST A LONG SHADOW FORWARD AFFECTING INVESTMENT DECISIONS MANY YEARS BEFORE 1997.

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