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11. To assist this process of discussion I should describe to the House the basis of our approach to the key
question of continuity. The Chinese Government have made it clear publicly that they recognise the special
circumstances of Hong Kong, and that they want its social and economic systems and lifestyle
in many ways
so different from those of mainland China - to remain unchanged. They have also underlined their recognition
that Hong Kong should continue as an autonomous unit in the international economic field. We share with the
Chinese Government the strongest possible common interest in these objectives. Our approach to the talks
has, therefore, been to examine with the government of China how it might be possible to arrive at
arrangements that would secure for Hong Kong, after 1997, a high degree of autonomy under Chinese sovereignty
and that would preserve the way of life in Hong Kong, together with the essentials of the present systems.
12. I believe that the Chinese government share the desire of Her Majesty's Government to see the
continuation in Hong Kong of a society which enjoys its own economic and social systems and distinct way of
life. Indeed Hong Kong has not in the past, and could not have existed over any period in a state of
hostility with China. Against this background it is possible to foresee a situation in the future in which
Hong Kong would, as part of China, enjoy a high degree of autonomy which would last for at least 50 years
from 1997. In such a situation, that autonomy would extend to administration, the maintenance and making of
laws, (including the common law system) the continuation of Hong Kong's own long-established and familiar
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