CONFIDENTIAL
HONG KONG
1. After an exchange of courtesies, the Prime Minister said that when she had come to Peking two years ago Britain and China had embarked upon a great adventure. She had not known quite how it would turn out and had indeed wondered whether work could be completed within the time limit of two years set by Chairman Deng Xiaoping and Premier Zhao. In the event, had a time limit not been set, the two sides might not have given the subject the concentration which it had required and warranted.
2.
The Prime Minister continued that she could not over- emphasise the importance which we attached to the agreement: it was for that reason that she had been so pleased when it was suggested that she and Premier Zhao should sign it on behalf of their respective governments. The agreement fully
met the interests of both countries and laid a foundation for the people of Hong Kong to build an even more flourish- ing community than they already possessed. The friendly
relations between Britain and China had enabled the two
countries to achieve the agreement; the fact of the agree- ment now created the basis for greater cooperation and even more friendly relations between the two countries.
3. The Prime Minister said that she would like to make three points about the agreement. First, the government which she led was committed to implementing the Joint Declaration in every respect. It would be both its pride and duty to do so. We appreciated the very clear and categorical statements that Chairman Deng and Premier Zhao had made to the same effect. Those statements had contributed to the excellent reception which the agreement had received both from the international community and in Hong Kong. Hong Kong people had told her of Premier Zhao's statement to them pledging total commit- ment to the fulfilment of the agreement; they had found that very reassuring indeed and were most grateful for it. Britain was of course committed to working very closely with China to put the agreement into effect.
4. Secondly, we were very much aware that a task of partic- ular importance would be the drafting of the Basic Law. considerable part of the substance of that law was indicated in the agreement, but Premier Zhao would be aware that the people of Hong Kong were naturally concerned about its draft- ing. The Prime Minister said that she had greatly appreciated the Premier's statement to a Hong Kong delegation that when the time came to draft the Basic Law, the Chinese Government would "solicit opinion from a wide range of people in Hong Kong". This would be extremely important, both for the maintenance of confidence and also to ensure that the Basic Law would be right for the capitalist system, in accordance with Chairman Deng Xiaoping's concept of "one country, two systems". The Hong Kong people possessed a good deal of expertise on the capitalist system and would wish to indicate certain things which would help make the Basic Law totally consistent with it. The "one country, two systems" concept
CONFIDENTIAL
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