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5. In Hong Kong my Rt Hon and learned friend held discussions with
the Governor and the Unofficial members of the Executive and
Legislative Councils, as well as meeting representatives of various strands of local opinion. He also made a public statement on the Government's approach to Hong Kong's future: copies of that statement have been deposited in the library of the House.
6.
In that statement the Foreign and Commonwealth Secretary described his clear conclusion that it would not be realistic to
think of an agreement that provided for continued British administration in Hong Kong after 1997. Every possibility had been
fully explored that conclusion was reached: but it was based both on experience in the negotiations themselves and on the reality of the expirety of the lease over the New Territories in 1997. Instead, we
have sought to explore other ways of securing the assurances
necessary for continuity in Hong Kong.
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7. There is a good basis on which we can build. The Chinese
Government have made it clear publicly that they recognise the special circumstances of Hong Kong and they want its social and economic systems and lifestyle to remain unchanged. We have
therefore been examining 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 of Hong Kong together with the essentials of the present systems.
8.
It is indeed 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 making of laws, the maintenance of Hong Kong's system of justice,
and responsibility for public order in the territory. Under such
arrangements the laws of Hong Kong, including the written and common law, would be based upon the present system: Hong Kong would manage its own public finances within which taxes levied in Hong Kong
would, as now, be employed in Hong Kong for the benefit of the Hong
Kong people. There would also be a place for outside people, for Britain and elsewhere, to go on working and making a contribution to
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