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SIR GEOFFREY: THAT MAY BE THE RIGHT HONOURABLE GENTLEMAN'S OPINION AND OF COURSE THERE IS ROOM FOR DIFFERENCES OF JUDGEMENT ABOUT THAT. IT IS NOT MY JUDGEMENT. MY OWN INSTINCTIVE REACTION TO THE ANNUAL ISATION OF REPORTS IS TO REGARD THAT AS OFTEN DIMINISHING THE IMPORTANCE AND VALUE OF THOSE INSTITUTIONS. BUT THE MATTER CAY BE LOOKED AT HEREAFTER NO DOUBT WILL BE LOOKED AT HEREAFTER MANY TIMES. THE POINT THAT I AM MAKING TO THE HOUSE IS THAT WE SHALL CERTAINLY REPORT TO THE HOUSE ON THESE MATTERS. WE SHALL CERTAINLY RECOGNISE THE NEED FOR THE HOUSE TO HAVE AN OPPORTUNITY

DEBATING THEM. I AM JUST NOT PERSUADED, DESPITE THE OVERWHELMING QUALITY OF THE RIGHT HONOURABLE GENTLEMAN'S RHETORIC AND THE READTH OF SUPPORT FOR THE PROPOSITION IN THE EARLIER DEBATE CHAT IT WOULD BE RIGHT TO INSTITUTIONALISE AN ANNUAL REPORT IN THIS WAY.

AS I HAVE SAID, SINCE THE DEBATE IN WHICH THOSE MATTEPS WERE RAISED, MY RIGHT HONOURABLE FRIEND AND I HAVE, AS I HAVE SAID,

I VISITED PEKING FOR THE SIGNATURE OF THE AGREEMENT AND WE WERE ABLE TO RAISE WITH CHINESE LEADERS A NUMBER OF THE QUESTIONS THAT WERE TOUCHED ON IN THAT DEBATE. THE HOUSE WILL NOT EXPECT ME TO GO INTO DETAILS OF OUR DISCUSSIONS, BUT CHINESE LEADERS AT THE HIGHEST LEVEL GAVE US SOLEMN ASSURANCES OF CHINA'S COMMITMENT TO FULL IMPLEMENTATION THE AGREEMENT AND OF THEIR INTENTION TO CONSULT HONG KONG OPINION ON THE DRAFTING OF THE BASIC LAW ON A WIDE BASIS.

FOLLOWING SIGNATURE, WE AND THE CHINESE GOVERNMENT BOTH HAVE TO SATISFY OUR RESPECTIVE CONSTITUTIONAL REQUIREMENTS IN ORDER TO RATIFY THE AGREEMENT. THE MAIN PURPOSE OF THE BILL BEFORE US TODAY IS TO ENABLE HER MAJESTY'S GOVERNMENT TO RATIFY THE AGREEMENT.

THE BILL ITSELF PROVIDES FOR THE TERMINATION OF BRITISH SOVEREIGNTY AND JURISDICTION OVER HONG KONG AS FROM 1 JULY 1997. I SHALL BRIEFLY DESCRIBE ITS MAIN FEATURES.

THE CENTRAL PROVISION OF THE BILL IS CLAUSE ONE. THIS PROVIDES FOR THE TERMINATION OF BRITISH SOVEREIGNTY OVER THE CEDED PARTS OF HONG KONG AND THE TERMINATION OF BRITISH JURISDICTION OVER THE WHOLE TERRITORY WITH EFFECT FROM 1 JULY 1997. THIS SECTION OF THE BILL WILL ENTER INTO FORCE ON THE EXCHANGE OF INSTRUMENTS OF RATIFICATION.

THIS CLAUSE WILL ENABLE THE GOVERNMENT TO MEET ITS OBLIGATION UNDER PARAGRAPH TWO OF THE JOINT DECLARATION IN WHICH THE GOVERNMENT OF THE UNITED KINGDOM DECLARES THAT IT WILL RESTORE HONG KONG TO THE PEOPLE'S REPUBLIC OF CHINA WITH EFFECT FROM 1 JULY 1997.

IN RECENT YEARS IT HAS BECOME THE INVARIABLE PRACTICE WHEN THE UK DIVESTS ITSELF OF SOVEREIGNTY OVER TERRITORY TO DO SO UPON THE AUTHORITY OF AN ACT OF PARLIAMENT. THE SITUATION OF HONG KONG IS OF COURSE SUI GENERIS. IN THIS CASE WE ARE ENTERING INTO AN AGREEMENT WITH ANOTHER POWER TO TERMINATE SOVEREIGNTY AS FROM A CERTAIN SPECIFIED DATE. NEVERTHELESS THE NEED FOR PARLIAMENTARY AUTHORITY FOR THE TERMINATION OF SOVEREIGNTY REMAINS THE SAME: IT IS ESSENTIAL THAT THIS AUTHORITY SHOULD EXIST BEFORE THE GOVERNMENT RATIFIES THE AGREEMENT AND THUS CREATES AN INTERNATIONAL OBLIGATION.

THE SCHEDULE