TNAG-1840-FCO40-2615-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 121

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DSR 11C (Revised 5/87)

administration in any form was unacceptable to the

Chinese Government and that the talks would break down if

the British Government continued to insist on it. Since

most of Hong Kong would in any case under the Treaty pass

under Chinese jurisdiction in 1997, the only way forward

was to explore the possibility of negotiating

arrangements under Chinese sovereignty which would

command sufficient confidence to ensure Hong Kong's

future stability and prosperity.

In Confidence

7. From October 1983, the two sides began to examine in

detail how to devise arrangements to secure for Hong Kong

after 1997 a high degree of autonomy under Chinese

sovereignty; and which would enable Hong Kong, as a

Special Administrative Region of the People's Republic of

China, to preserve its existing way of life and the

essential elements of its present system. A great deal

of work was required in order to turn this concept that

of "one country two systems" into a written agreement

that embodied such arrangements with sufficient clarity

and precision to be acceptable to the British Government.

The Foreign Secretary paid two visits to Peking in

April and July 1984, during both of which substantial

progress was made. That paved the way to final

agreement: the texts were initialled on 26 September

1984.

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III: Consultation with the people of Hong Kong

8. The negotiations were conducted on a strictly

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