TNAG-1437-FCO40-1921-Constitutional-development-in-Hong-Kong-1986 — Page 47

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There is a common meeting ground between the

Chinese and British Governments in that both parties are

committed to uphold the terms of the Joint Declaration,

in spirit and in practice.

However, there will be

differences in interpretation of some of the terms from time

to time which will have to be resolved as the occasion

arises. I am sure that both sides will be able to rise to

the occasion.

One of the principal areas which will tax the minds

of all parties concerned has to do with the development of

Hong Kong's political structure between now and 1997, and its

incorporation in the draft Basic Law which is due for

publication in 1990.

The attitude by China is that it is better for the

British Government to make only those changes between now and

1997 as will ensure continued prosperity and stability, and

the smooth return of sovereignty to China in 1997.

China is concerned that should the pace of

political change move ahead too rapidly, Hong Kong's social

stability and economic progress could be at stake. Not only

that, but also such a situation could possibly adversely

affect the smooth transfer of sovereignty in 1997.

Britain, on the other hand, recognizing that it

will have to restore sovereignty and administrative rights to

China by 1997, considers it has a moral responsibility to

/allow