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MONDAY, DECEMBER 10, 1984

THE AGREEMENT IS THE PRODUCT OF LONG AND SOMETIMES DIFFICULT NEGOTIATIONS. NEGOTIATIONS, BY DEFINITION, REQUIRE GIVE AND TAKE. THE AGREEMENT GOES A LONG WAY, BUT IT DOES NOT AND CANNOT PROVIDE ANSWERS TO ALL QUESTIONS TO WHICH IT WILL BE NECESSARY TO PROVIDE ANSWERS OVER THE NEXT 63 YEARS.

ONE

I RECOGNISE THAT IT WILL BE NECESSARY TO ELABORATE FURTHER ON SOME OF THE GENERAL PRINCIPLES SET OUT IN THIS AGREEMENT. SUCH AREA IS OF CONSTITUTIONAL ARRANGEMENTS AND GOVERNMENT STRUCTURE OF THE FUTURE SPECIAL ADMINISTRATIVE REGION. THE AGREEMENT PROVIDES AN EXCELLENT FRAMEWORK TO WHICH THE DETAILS WILL HAVE TO BE ADDED.

IN THIS CONNECTION I KNOW THAT MANY NOBLE LORDS WILL HAVE READ WITH INTEREST THE WHITE PAPER ON CONSTITUTIONAL DEVELOPMENT WHICH HAS BEEN PUBLISHED BY THE HONG KONG GOVERNMENT. THIS PROVIDES FOR SUBSTANTIAL DEVELOPMENTS TOWARDS REPRESENTATIVE INSTITUTIONS IN THE 1985 ELECTION AND THE PROSPECT OF FURTHER DEVELOPMENT IN THIS DIRECTION AFTER A REVIEW IN 1987. THAT REVIEW WILL ALSO CONSIDER THE QUESTION OF DIRECT ELECTIONS. THE HONG KONG GOVERNMENT PROPOSALS TAKE INTO ACCOUNT THE GENERAL DESIRE, EXPRESSED THROUGH THE CONSULTATIVE PROCESS, FOR THE PROPOSALS TO AVOID ANY SUDDEN AND DRAMATIC CHANGES WHICH COULD PROVE UNSETTLING TO THE TERRITORY. THE SUCCESS OF THE AGREEMENT WILL DEPEND NOT ONLY ON THE GOVERNMENTS OF CHINA AND THE UNITED KINGDOM BUT, IN A LARGE PART, ON THE PEOPLE OF HONG KONG AND THEIR WILLINGNESS TO MAKE IT WORK. I AM CONFIDENT THAT THEY WILL RISE TO THIS CHALLENGE AND THAT THEY WILL MAKE THE TERRITORY EVEN MORE SUCCESSFUL THAN IT IS TODAY. WE, FOR OUR PART, WILL REMAIN UTTERLY COMMITTED TO HONG KONG UP TO 1997 AS THE ADMINISTERING POWER. THEREAFTER, I AM SURE THAT HONG KONG AND BRITAIN WILL REMAIN CLOSELY CONNECTED THROUGH A COMPLEX OF ECONOMIC, CULTURAL AND PERSONAL TIES AS THE GOVERNMENT PROVIDES.

MY LORDS, THE PRIME MINISTER AND THE FOREIGN AND

COMMONWEALTH SECRETARY PLAN TO TRAVEL TO PEKING LATER THIS MONTH FOR THE SIGNATURE OF THE AGREEMENT. THEY WILL ALSO VISIT HONG KONG. FOLLOWING SIGNATURE, THE GOVERNMENT WILL BRING FORWARD LEGISLATION EARLY IN 1985 TO PROVIDE FOR THE TERMINATION OF SOVEREIGNTY IN 1997 AND TO PROVIDE POWERS TO MAKE OTHER NECESSARY CHANGES TO THE LAW IN CONNECTION WITH THIS.

MY LORDS, I LOOK FORWARD TO HEARING YOUR LORDSHIPS' VIEWS ON THIS AGREEMENT. FOR THE IR PART THE GOVERNMENT REGARD IT

AS A VERY SATISFACTORY OUTCOME OF THE NEGOTIATIONS. WE BELIEVE THAT IT PROVIDES A SOUND BASIS ON WHICH A STABLE AND PROSPEROUS HONG KONG CAN CONTINUE INTO THE NEXT CENTURY. I WARMLY COMMEND IT TO THE HOUSE.

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