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ON

NEGOTIATIONS IN THE RECESSION YEAR OF 1982 WHICH

IMPOSED A SHARP BRAKE ON THE GROWTH OF OUR ECONOMY. IN

THE AUTUMN OF 1983 THE HONG KONG DOLLAR WAS SEVERELY

AFFECTED BY POLITICAL DOUBTS OVER THE COURSE OF THE

NEGOTIATIONS.

THROUGHOUT THE POPULATION OF HONG KONG

AND THE REST OF THE WORLD COULD ONLY GUESS AT WHAT THE

OUTCOME OF THE NEGOTIATIONS MIGHT BE BECAUSE THEY HAD

PERFORCE TO BE CONDUCTED IN CONFIDENCE IF THEY WERE TO

HAVE ANY CHANCE OF SUCCESS.

17.

WHEN IT EMERGED, THE SINO-BRITISH AGREEMENT

PROVED A TRIBUTE TO GOOD SENSE. IT OWED MUCH TO THE

IMAGINATION OF CHINESE LEADERS WHO RECOGNISED THAT, IF

THE CONFIDENCE ON WHICH THE STABILITY AND PROGRESS OF

HONG KONG DEPENDS IS TO BE MAINTAINED, HONG KONG NEEDS

TO CONTINUE WITH ITS OWN DISTINCTIVE ECONOMIC AND

SOCIAL SYSTEM.

18.

THE ESSENCE OF THE AGREEMENT IS THAT IT

PROVIDES FOR THE CONTINUATION OF ALL THOSE ELEMENTS

WHICH HAVE CONTRIBUTED TO HONG KONG'S SUCCESS IN THE

PAST, AS SUCH IT REMOVES MUCH OF THE UNCERTAINTY ABOUT

THE FUTURE, AND ENABLES THE BUSINESS COMMUNITY ONCE

MORE TO TAKE COMMERCIAL DECISIONS ON THE IR OWN MERITS.

FOR THOSE WHO ARE CONSIDERING HONG KONG AS AN OFFSHORE

BASIS TO EXPAND THE IR OPERATIONS. THE AGREEMENT SPELLS

OUT MANY OF THE GUARANTEES FOR INVESTMENT WHICH

FORMAL INVESTMENT PROTECTION AGREEMENTS NORMALLY SEEK

TO COVER.

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