TNAG-1850-FCO40-2625-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 11

MARACR (3)

ANY QUESTION OF HMG REFUSING TO HAND OVER SOVEREIGNTY IN 1997?

(If it became clear that Chinese would not abide by undertakings given in Joint Declaration, would HMG refuse to hand over sovereignty? If 1997 were now, would you hand over Hong Kong?)

Reality is that 92% of territory of Hong Kong reverts to China

in 1997 by Treaty. Remaining 8% not viable on its own. That is the

inevitable context in which our policy on Hong Kong must be based.

Our aim must continue to be to create the conditions in which

the transfer of sovereignty in 1997 can take place in a way which

preserves stability and prosperity of Hong Kong.

Despite deplorable events in Peking, fact remains that it is in

China's long term interests for Hong Kong to continue to be

successful.

HOW TO MAINTAIN CONFIDENCE IN HONG KONG

I am going to Hong Kong early next month and will be discussing with Governor and his advisers and a broad range of Hong Kong

opinion what more can be done.

One thing I shall certainly do is to make it very clear that we

fully intend to fulfil our responsibility for the administration of the territory right up to 1997.