XN000022-1984-12-10 — Page 2

MONDAY, DECEMBER 10, 1984

SPEECH BY BARONESS YOUNG

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FOLLOWING IS A FULL TRANSCRIPT OF THE SPEECH BY BARONESS YOUNG IN OPENING THE HOUSE OF LORDS DEBATE ON THE FUTURE OF HONG KONG:-

BARONESS YOUNG (CON): I DO NOT NEED TO REMIND THE HOUSE OF THE HISTORIC IMPORTANCE OF THE DRAFT AGREEMENT ON THE FUTURE OF HONG KONG. WE ARE PROVIDING FOR THE FUTURE OF THE FIVE AND A HALF MILLION PEOPLE OF THE TERRITORY AND ONE OF THE WORLD'S LARGEST FINANCIAL CENTRES INTO THE MIDDLE OF THE 21ST CENTURY. IT IS A UNIQUE ARRANGEMENT TO DEAL WITH A UNIQUE PROBLEM BEQUEATHED TO US BY HISTORY. IT IS RIGHT THAT WE SHOULD HAVE AN OPPORTUNITY TO DEBATE IT IN FULL AND, AS ALWAYS

IN YOUR LORGBGIPS' HOUSE, WE HAVE IN THE CHAMBER MANY NOBLE LORDS WHO KNOW THE TERRITORY WELL INCLUDING ONE AS GOVERNOR, WE SHALL ALL LISTEN WITH GREAT INTEREST TO THE MAIDEN SPEECH OF THE NOBLE EARL, LORD BIRKENHEAD. I AM SURE WE WILL HAVE A THOROUGH AND WELL-INFORMED DEBATE.

THE AGREEMENT IS THE OUTCOME OF TWO YEARS OF COMPLICATED AND OFTEN DIFFICULT NEGOTIATIONS. THE GOVERNMENT ENTERED INTO THESE NEGOTIATIONS WITH THE CHINESE GOVERNMENT IN 1982, AGAINST THE BACKGROUND OF THE HISTORICAL REALITIES WHICH DETERMINE HONG KONG'S POSITION TODAY. IN 1997 THE LEASE ON THE NEW TERRITORIES WILL RUN OUT. UNDER THAT LEASE, UNLESS OTHER ARRANGEMENTS WERE MADE, 92 PER CENT OF HONG KONG'S LAND AREA WOULD REVERT TO CHINA. THE CEDED TERRITORIES MAKING UP THE REMAINING EIGHT PER CENT COULD NOT SURVIVE AS AN ENTITY IN THE IR OWN RIGHT. THEY HAVE, OVER THE YEARS, BEEN COMPLETELY INTEGRATED WITH THE REST OF HONG KONG. IN THESE CIRCUMSTANCES

TO DO NOTHING THERE WAS NO REAL CHOICE FOR THE GOVERNMENT,

WOULD HAVE, IN PRACTICE, HAVE MEANT THE REVERSION OF THE TERRITORY TO CHINA IN 1997 WITHOUT AGREED ARRANGEMENTS - WHICH WAS NOT REALLY AN OPTION. THE UNCERTAINTY IN THE MEANTIME WOULD HAVE DESTROYED HONG KONG.

IT WAS CLEAR THAT WE HAD TO SEEK, BY NEGOTIATION WITH CHINA, ARRANGEMENTS WHICH WOULD PERMIT THE MAINTENANCE OF HONG KONG'S STABILITY AND PROSPERITY AND TO SEEK TO ENSHRINE THESE ARRANGEMENTS IN A FORMAL AGREEMENT WITH CHINA.

IN SEPTEMBER 1982, DURING THE PRIME MINISTER'S VISIT TO PEKING, AGREEMENT WAS REACHED TO ENTER INTO NEGOTIATIONS WITH THIS PURPOSE. IT WAS CLEAR FROM THE START THAT ANY AGREEMENT MUST BE ONE THAT WE COULD HONOURABLY COMMEND TO THE PEOPLE OF HONG KONG, AND TO PARLIAMENT, AND ONE WHICH THEY WOULD FIND ACCEPTABLE.

/IN THE