, St. John's University, Jamaica, New York. ISSN 0272-1155. Copyright 1986 by The Heritage Foundation.
They agreed to enter talks through diplomatic channels following the visit with the common aim of maintaining the stability and prosperity of Hong Kong. I
Talks over the future of Hong Kong began immediately. Although the negotiations were complex and at times bitter, there were essentially two stages. In the first stage, roughly September 1982 to June 1983, the PRC made known and London eventually accepted the fundamental principle of Chinese sovereignty ove r Hong Kong in 1997. Once that had been established, the second more detailed phase of the negotiations got underway. In this stage, which lasted until September 1984, the British and the Chinese first wrestled with the issue of a British administrative ro l e after 1997--an idea that London finally relinquished in September 1983. Then came an exhaustive but relatively harmonious period of negotiations in which the British educated the Chinese on the complexities of ruling Hong Kong and the conditions necessa ry for its continued prosperity. In this final stage of negotiations, the PRC demonstrated a great deal of pragmatism.
The period from January to September 1984 was a difficul t one for Hong Kong, which had been denied a role in the negotiations by the Chinese. Riots, the crash of the stock market, the relocation of key Hong Kong businessmen, runs on banks and various enterprises, insulting treatment given to members of Hong Ko n g's Executive Council by both Great Britain and China, and the unilateral setting by the Chinese of a September 1984 deadline for an agreement--all contributed to Hong Kong's anxiety. Nonetheless, the negotiations went forward smoothly as the last issues were worked out,between the British and Chinese.
The Hong Kong Agreement reflects both the vagueness of principle, which the Chinese initially preferred, and the considerable administrative detail, which the British were able to insert after a great deal'o f effort on their part. The Agreement itself consists of a Joint Declaration and three Annexes. Each part has equal status, the whole making up a formal international agreement legally binding in all its parts. An international agreement of this kind is t he highest form of commitment between two sovereign states.1 . A concise, official statement of the history of the London-Beijing agreement on the future of Hong Kong can be found in "A Draft Agreement between the Government of the United Kingdom of Great B ritain and Northern Ireland and the Government of the People's Republic of China on the Future of Hong Kong" (London: Her Majesty's Government, September 26, 1984). For a much richer history, see Frank Ching, Hong Kona and China (New York: China Council o f the Asia Society, 1985).
- 2In the Joint Declaration, the two governments restore the right of sovereignty over Hong Kong to China on July 1, 1997; set forth the basic policies of the PRC regarding Hong Kong (a point that will be elaborated upon momen tarily); agree that London will remain responsible for the administration of Hong Kong until June 30, 1997; and establish a Sino-British Joint Liaison Group to ensure a smooth transition of government in 1997. Annex I contains an elaboration of Chinese policies for the Hong Kong Special Administrative Region (SAR) after 1997. The concept of the SAR is contained in Article 31 of the PRC Constitution, which provides: The state may establish special administrative regions when necessary. The systems to be instituted in special administrative regions shall be prescribed by law enacted by the Nationai People's Congress in the light of the specific conditions. As explained by Peng Zhen in 1982, this provision was specifically designed for Taiwan, Hong Kong,,-la nd Macau.3 The fact that Hong Kong is a SAR with "a high degree of autonomy" is also significant, because it places Hong Kong ina special administrative relationship with the central government of China. This type of unique arrangement is what constitutes the "one country, two 