TNAG-1840-FCO40-2615-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 16

instrument under which the New Territories was governed was due to expire in 1997; and uncertainty as to what would happen thereafter

would have led to an erosion of confidence as the reality of Hong

Kong's uncertain future became closer and clearer.

4. Against this background, the British Government resolved to remove the uncertainty imposed by the 1997 deadline. The visit of the Prime Minister to China in 1982 provided an appropriate opportunity to open discussions with the Chinese Government about Hong Kong's future. As a result of that visit, the two sides agreed that talks would begin "with the common aim of maintaining the

stability and prosperity of Hong Kong".

II. The negotiation of the Joint Declaration

5

The negotiations lasted two years, from September 1982 to September 1984, when the documents comprising the Agreement were initialled. The negotiations fell into two phases: an initial phase, conducted through the British Embassy in Peking; and a second phase of formal talks, which began in July 1983 and consisted of 22 rounds of negotiations over 14 months, supplemented by informal contacts, and in the final four months by full-time discussion of draft texts tabled by the two sides. The Foreign Secretary, Sir Geoffrey Howe, was closely involved at every stage in the second phase of the talks and intervened personally at several important points in the negotiations.

6.

The British side The negotiations were complex and difficult. initially argued hard for the retention of British administration in Hong Kong after 1997 as the surest way of maintaining the prosperity and stability of the territory. After protracted discussion, however, it became clear that the continuation of British 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