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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 and prosperity.
7. From October 1983, the two sides began to examine in detail how to devise arrangements which would 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.
III. CONSULTATION WITH THE PEOPLE OF HONG KONG
8. The negotiations were conducted on a strictly confidential basis. But the British Government had made it clear from the outset that any agreement on Hong Kong's future would have to be acceptable to the people of Hong Kong. The Governor of Hong Kong was a member of the British negotiating team. Members of the Executive Council, the Governor's closest advisers, were kept fully informed of developments. The Foreign Secretary consulted the Executive Council before each of his visits to China. Our negotiating position was helpfully and decisively influence by their advice. The Governor and members of the Executive Council visited London on several occasions, for talks with the Prime Minister and other Ministers; and British Ministers paid a series of visits to the territory to keep in direct touch with opinion there, including in particular with Members of the Legislative Council.
9. After the Joint Declaration was initialled in September 1984, an Assessment Office was set up in Hong Kong to analyse and assess the views of Hong Kong people on the draft. To ensure complete impartiality, the work of the Assessment Office was overseen by two eminent independent monitors. The Assessment Office found that the draft had been widely accepted by the people of the territory: there was general recognition that a document containing such detailed and comprehensive provisions for Hong Kong's future would be couched in very general terms. The Agreement was widely welcomed internationally as a major diplomatic achievement.
IV. CONSULTATION WITH The British Parliament
10. The British Parliament took a close interest in the progress of the negotiations and in the Joint Declaration itself. There were debates on Hong Kong in October and November 1983 and in May 1984. The draft Agreement was presented to Parliament in a White Paper in September 1984. In thorough and wide ranging debates in December 1984, the overwhelming majority of speakers expressed the view that the agreement was an excellent one which provided a sound basis for a stable and prosperous future for Hong Kong after 1997. The Joint Declaration was signed by the British and Chinese Governments on 19 December 1984. The Hong Kong Act 1985, providing for the ending of British sovereignty and jurisdiction over Hong Kong on 30 June 1997, was passed by Parliament and received the Royal Assent on 24 April 1985.
11. The Agreement entered into force on 27 May 1985, when instruments of ratification were exchanged in Peking between the British and Chinese Governments. On 12 June 1985 it was registered at the United Nations by the two governments, in accordance with the normal practice.
V.
ANALYSIS OF THE JOINT DECLARATION
12. The Agreement consists of a Joint Declaration by the two governments and three Annexes. The Annexes have the same status as the Joint Declaration. Associated with the Agreement is a separate Exchange of Memoranda on the status after 1997 of Hong Kong British Dependent Territories citizens.
13. The Joint Declaration sets out the essentials of what had been agreed by the two governments. It outlines the policies of the Chinese Government towards Hong Kong after 1997, which are further elaborated in Annex I. Paragraph 7 stipulates that the two governments agree to implement the Joint Declaration and Annexes. It has the effect of making them legally binding on both parties.
14. The detail of the Agreement is contained in the Annexes. The first Annex describes Chinese policies towards Hong Kong after 1997. (For convenience, Annex A to this Memorandum contains a summary of the key points.) The second Annex to the Joint Declaration describes the terms of reference of the Joint Liaison Group (see paragraphs 18-23 below). The third Annex is concerned with the question of land leases, which are to be dealt with through the work of the Land Commission (see paragraphs 24
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