XN000022-1984-09-26 — Page 3

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WEDNESDAY, SEPTEMBER 26, 1984

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THIRD, THE MAJOR PART OF HONG KONG IS DUE TO REVERT TO THE PEOPLE'S REPUBLIC OF CHINA IN 1997. THE REMAINDER WOULD NOT HAVE BEEN VIABLE ALONE. THIS PROBLEM HAD THEREFORE TO BE DEALT WITH BY NEGOTIATIONS WITH THE CHINESE GOVERNMENT. IN ANY CASE IT IS A FACT OF GEOGRAPHY, AND AN INESCAPABLE ELEMENT OF HONG KONG'S UNIQUE POSITION TODAY, THAT IT NEEDS A SOUND RELATIONSHIP WITH ITS GREAT MAINLAND NEIGHBOUR.

+ALTHOUGH THE PROBLEM WAS ONE WHICH NEEDED A SOLUTION NOW, THE DISCUSSIONS WERE LARGELY DOMINATED BY THE NEED TO SET OUT WHAT WILL HAPPEN IN 13 YEARS' TIME. THERE WAS A CLEAR REQUIREMENT TO SET OUT FOR ALL THOSE CONCERNED IN HONG KONG, AND OUTSIDE, WHAT WOULD CHANGE AND WHAT WOULD REMAIN ESSENTIALLY THE SAME. THE TASK WAS TO REMOVE THE UNCERTAINTY WHICH THE 1997 DEADLINE IMPOSED, AND TO REPLACE IT WITH A BASIS ON WHICH THE PEOPLE OF HER HONG KONG COULD BUILD A REASONABLE FUTURE FOR THEMSELVES. MAJESTY'S GOVERNMENT AND THE EXECUTIVE COUNCIL OF HONG KONG BELIEVE THAT THE DRAFT AGREEMENT IS ONE WHICH THEY CAN COMMEND TO THE PEOPLE OF HONG KONG AND TO THE BRITISH PARLIAMENT AS A SOUND BASIS FOR THAT FUTURE. IT PROVIDES A FRAMEWORK WITHIN WHICH THEY CAN CONTINUE TO PLAN THE IR LIVES, WORK AND RAISE THE IR FAMILIES IN HONG KONG IN PEACE AND SECURITY WITH THEIR RIGHTS AND FREEDOMS PROTECTED UNDER THE LAW. I WILL EXPLAIN THE REASONS FOR THIS CONVICTION.

+WHATEVER VIEW ONE TAKES OF THE CIRCUMSTANCES IN WHICH HONG KONG'S LINK WITH BRITAIN WAS FORGED, IT IS THAT LINK WHICH HAS PROVIDED HONG KONG WITH THE FOUNDATIONS OF ITS PRESENT SYSTEMS. THE LINK WITH BRITAIN HAS IN PRACTICE AND BY CONVENTION COME TO ALLOW HONG KONG A HIGH DEGREE OF AUTONOMY IN THE REGULATION OF ITS AFFAIRS. WITHIN THAT FRAMEWORK THE SYSTEM WHICH HAS EVOLVED IN HONG KONG ON THIS BASIS IS DIFFERENT FROM THAT ON THE MAINLAND OF CHINA. SINCE THE ONLY BASIS FOR A SOLUTION ACCEPTABLE TO THE CHINESE GOVERNMENT WAS THAT CHINA SHOULD RESUME THE EXERCISE OF SOVEREIGNTY OVER HONG KONG IN 1997 AND THUS THAT THE CONSTITUTIONAL LINK WITH BRITAIN SHOULD BE SEVERED, IT WAS OBVIOUSLY NECESSARY TO FIND A WAY OF ENSURING THAT THE DIFFERENT SYSTEMS IN FORCE IN HONG KONG COULD BE MAINTAINED AND

THE THAT PEOPLE WOULD HAVE CONFIDENCE THAT THIS WOULD BE SO. CHINESE LEADERS HAVE THEMSELVES ACKNOWLEDGED THIS IN THEIR FAR- SIGHTED AND IMAGINATIVE PROPOSAL FOR A ONE COUNTRY, TWO SYSTEMS+ ARRANGEMENT.

+ IN CONSEQUENCE, IN THE VIEW OF THE BRITISH GOVERNMENT, ANY AGREEMENT BETWEEN THE UNITED KINGDOM AND THE PEOPLE'S REPUBLIC OF CHINA HAD TO MEET THE FOLLOWING ESSENTIAL REQUIREMENTS:

IT HAD TO PROVIDE SUFFICIENT DETAIL, AND IN LANGUAGE FAMILIAR TO THOSE LIVING AND WORKING IN HONG KONG, FOR CONTINUITY OF THE IR SOCIAL, ECONOMIC, FINANCIAL, MONETARY, JUDICIAL AND OTHER SYSTEMS. EXCEPT FOR THOSE CHANGES REQUIRED BY THE TRANSFER OF SOVEREIGNTY AND THE RIGHT OF ADMINISTRATION TO THE PEOPLE'S REPUBLIC OF CHINA.

/TO GIVE ............