TNAG-2079-FCO40-2959-Hong-Kong-press-coverage-and-reports-1990 — Page 253

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schoss every sign of staring Fortunately, for Britain and Hong Kong, China shares our desire to negotiate a transition preserving the cultural, political and

economic identity of the colony. The Sino-British Joint Declaration of 1984 was a major achievement which established the basis for Hong

Kong's future. It is a binding international agreement, registered

with the United Nations, which specifies that Hong Kong, as a largely

autonomous administrative zone of China, will have its own

government; preserve its capitalist system for at least fifty years;

retain its human rights, laws, legal system, convertible currency,

financial markets and free port. We have since made good progress

on the details through the patient work of the Joint Liaison Group.

The

Despite, or rather because of, Tiananmen Square, we have a clear duty to uphold and consolidate these achievements. Tiananmen Square certainly damaged both confidence in Hong Kong and the credibility

Must of the Chinese government. But I do not accept that it necessarily call into question Chinese adherence to the Joint Declaration. People's Republic of China has never before broken such an international agreement, and in the last year they have frequently

reaffirmed their commitment to the concept of "one country, two

systems". China's serious intent has been demonstrated by the work they have put into the recently promulgated Basic Law. In its fifth and eleventh articles this clearly states that socialism will

not be extended to Hong Kong fr at least toolf a century. On recent evidence the prospects of Hing King lasting fifty years are considerating better than those of socialism.

China also has a massive economic stake in preserving the amazing

phenomenon of Hong Kong. It is a vital source of hard currency and economic en ry for the mainland. Real growth over the last ten years, even in the shadow of political uncertainty, has averaged over 7%. Per capita GNP - about £7,200 per year is among the highest in the region. This tiny place is the eleventh largest trading entity in the world. The richer and more confident we leave it, the more indispensible it will be to China and the better the prospect for its economic and political freedoms. That is why the Hong Kong Government is pressing ahead with the programme of democratisation and the bill of Rights. And why we are supporting a £10 billion infrastructure project to redevelop the port and to

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