TNAG-1852-FCO40-2627-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 83

CONFIDENTIAL

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164510 MDHOAN 7375

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 2267

OF 09180OZ NOVEMBER 89

HKB 011 13

TOP COPY

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AND TO IMMEDIATE PEKING BTC HONG KONG, UKREP JLG HONG KONG

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YOUR TELNOS 3551-3552 AND PEKING TELNO 1880: FAC REPORT ON HONG KONG: DRAFT AS FOLLOWS

PART ONE OF TWO

1. THIS PAPER CONTAINS THE GOVERNMENT'S OBSERVATIONS ON THIS

THE GOVERNMENT WISH TO RECORD REPORT (HC281-I OF 28 JUNE 1989). THEIR APPRECIATION OF THE COMMITTEE'S WORK AND WELCOME THE REPORT AS A VALUABLE CONTRIBUTION TO THE DEBATE ON THE FUTURE OF HONG KONG. THE REPORT OFFERS A THOUGHTFUL ANALYSIS OF THE ISSUES, AND MAKES A SERIES OF IMPORTANT RECOMMENDATIONS FOR THE ADMINISTRATION OF HONG KONG UP TO 1997 AND BEYOND.

2 THESE OBSERVATIONS FOLLOW THE STRUCTURE OF THE COMMITTEE'S

REPORT:

(I) INTRODUCTION: THE UNITED KINGDOM OBLIGATION TO HONG KONG. (II) THE JOINT DECLARATION AND THE BASIC LAW.

(III) ACTIONS WITHIN HONG KONG.

(IV) BRITISH POLICY AND ACTIONS.

(V) VIETNAMESE BOAT PEOPLE.

(VI) SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS.

(I) THE UNITED KINGDOM OBLIGATION TO HONG KONG

3. THE REPORT RIGHTLY DRAWS ATTENTION TO THE UNIQUE POSITION OF HONG KONG AS THE UNITED KINGDOM'S ONLY COLONY OR DEPENDENT TERRITORY WHOSE PEOPLE CANNOT EXERCISE THE FUNDAMENTAL RIGHT OF SELF DETERMINATION. IT RECOGNISES THAT IT WAS NECESSARY, IN THE LIGHT OF THE EXPIRY ON 30 JUNE 1997 OF THE LEASE ON 92 PERCENT OF THE LAND AREA, TO REACH AN AGREEMENT WITH CHINA WELL AHEAD OF THAT TIME FOR THE ORDERLY TRANSFER OF SOVEREIGNTY OF THE WHOLE TERRITORY IN 1997 (PARAGRAPH 1.6). THE GOVERNMENT WELCOME THE COMMITTEE'S RECOGNITION OF THE IMPORTANCE OF THE JOINT DECLARATION WHICH IT DESCRIBES AS QUOTE A REMARKABLE ACHIEVEMENT UNQUOTE (IBID). THE GOVERNMENT SHARE THE COMMITTEE'S VIEW THAT BRITAIN'S OBLIGATIONS STEM FUNDAMENTALLY FROM THE UNIQUE CHARACTERISTICS OF HONG KONG AND FROM THE PROVISIONS OF THE JOINT DECLARATION (PARAGRAPH 1.8)

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IN THE LIGHT OF RECENT EVENTS IN CHINA AND THE RESULTING LOSS OF CONFIDENCE IN HONG KONG, THE COMMITTEE SUGGESTS THAT THE GOVERNMENT SHOULD REVIEW THE SPECIFIC IMPLEMENTATION OF THEIR

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