SECURITY CLASSIFICATION
DSR 11C (Revised 5/87)
sense in that. Now of all times is when we must keep our
nerve and hang on to what has been achieved.
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In Confidence
12.
For nothing can change the underlying reality that
the Joint Declaration is a good Agreement for Hong Kong
and China. There are compelling reasons for China to
observe its terms. Despite the disastrous turn of events
it remains as true as ever that it is in China's own
interests that Hong Kong should remain stable and
prosperous. Indeed, this should become even clearer than
before as the impact of these events on the Chinese
economy becomes felt.
13. These fundamental perceptions must form the bedrock
of our thinking as we set out to rebuild confidence.
That is why the Joint Declaration remains the central
element in our work to safeguard Hong Kong's future.
But I will not pretend that this will be enough. Much
more than this will be needed. China, Britain and Hong
Kong all have a vital role to play.
14. First, China must act to restore faith in its
commitment to its international obligations under the
Joint Declaration.
Mere words will not be enough.
Nothing can wipe out the horror of the bloodshed of early
June. But China must take urgent steps to begin to
repair the psychological damage that has been inflicted
on Hong Kong people as well as its own citizens.
15. This means that China must rethink its attitude
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