TNAG-2791-FCO40-4030-Relations-between-Hong-Kong-and-China.-With-maps-1993 — Page 128

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they should "put their hearts at ease". He did not say at the

time, however, that Deng had made it clear that he also intended

to regain Chinese sovereignty.

By this stage the Chinese side had normalised relations with

the United States and, as a consequence, adopted а more

conciliatory approach towards unification with Taiwan. By the

terms announced in January 1979 Beijing offered Taiwan

unification based on the principle of retaining the existing

system on the island including control of defence and foreign

affairs. Not surprisingly, this provided the model for the

Chinese approach to Hong Kong except that there was no question

of ceding autonomy in defence and foreign affairs. The Chinese

and British sides prepared their negotiating positions and began

the actual negotiations in 1982 "with the common aim of

maintaining the stability and prosperity of Hong Kong. The

British side initially argued for the retention of British

administration as the surest way of doing so. But it gave way

after the Chinese side showed in September 1983 that when the

issue of sovereignty was involved it was prepared to risk the

collapse of the Hong Kong economy and when a deadline was issued

after which the Chinese

unilaterally. The British

threatened to resolve the issue

concession gave way to intensive

negotiations which resulted in the initialling of the Joint

Declaration in September 1984.

By the terms of the Joint Declaration Hong Kong would revert

to Chinese sovereignty on 1 July 1997 as a Special Administrative