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THE COURSE OF THE NEGOTIATIONS
9. The Prime Minister's visit was followed by the first phase of negotiations conducted by H M Ambassador, Peking and the Chinese Foreign Ministry. These consisted of exchanges between the two sides on the basis on which the negotiations would be conducted, and on the agenda. On 1 July 1983 it was announced that the second phase of the talks would begin in Peking on 12 July. The pattern of negotiation in the second phase, which was continued until the end of the negotiations, was for formal rounds of talks to be held between delegations led by HM Ambassador in Peking and a Vice or Assistant Minister of the Chinese Foreign Ministry, supplemented as necessary by informal contacts between the two delegations. The Governor of Hong Kong took part in every round of formal talks as a member of the British delegation.
10.
In the course of the negotiations Her Majesty's Government explained in detail the systems which prevail in Hong Kong and the importance for these systems of the British administrative role and link. Following extensive discussion, however, it became clear that, since in the Chinese view, sovereignty and the right of administration over Hong Kong were inseparable, the continuation of British administration after 1997 would not be acceptable to China in any form. After full consultation with the Governor and the Executive Council of Hong Kong, Her Majesty's Government therefore proposed that the two sides discuss on a conditional basis what effective measures other than continued British administration might be devised to maintain the stability and prosperity of Hong Kong and explore further the Chinese ideas about the future which had at that stage been explained to them, in order to see whether on this basis, arrangements which would ensure lasting stability and prosperity for Hong Kong could be constructed. The Chinese Government were told that if this process was successful, Her Majesty's Government would consider recommending to Parliament a bilateral agreement enshrining the arrangements. Her Majesty's Government also undertook in this to assist in the implementation of such arrangements, and to recommend to Parliament that sovereignty and administrative control pass to China. Following this, Her Majesty's Government sought to explore with the Chinese the implications of their proposals for
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