"three-legged stool" negotiation with Hong Kong representatives and insisted on China's sovereignty over Hong Kong in 1997. Chung voiced the concerns of the Hong Kong people regarding Hong Kong's future and the potential exodus of professionals, talent and capital, which would result in an economic recession. He also expressed concerns over China's policy on Hong Kong after 1997. In response, Deng said there would be a Joint Liaison Group set up in the transition period and assured him that Hong Kong people would run Hong Kong after 1997. After returning from Beijing, Chung said in a press conference that Chairman Deng did not believe there was a crisis of confidence in Hong Kong. The remarks attracted scorn from the Director of the New China News Agency (NCNA) Xu Jiatun, who described them as "ministers falling from grace" of the British. After the fifth and final UMEXCO mission to London in September 1984, during which its members were briefed on the details of the agreement, UMEXCO publicly endorsed the proposed Sino-British Joint Declaration, believing that it fulfilled the demands set out in UMELCO's position paper. In December, Chung was invited to witness the signing of the Sino-British Joint Declaration. For his contributions during the negotiations, he was awarded Knight Grand Cross of the Most Excellent Order of the British Empire (GBE) after his retirement in 1989. Post-agreement period Chung and Dunn turned down an invitation from Beijing to sit on the Hong Kong Basic Law Consultative Committee (BLCC) to draft the Basic Law of Hong Kong as it would undermine their positions as the Senior Members of the Executive and Legislative Councils. However, Chung maintained close ties with Xu Jiatun in the ensuing years on the issues of the implementation of the Sino-British Joint Declaration and democratic development in Hong Kong. On 1 September 1988, Chung stepped down from the Executive Council and retired from politics. Chung was also chairman of the Hong Kong Japan Business Cooperation Committee from 1983 to 1988 and the Hong Kong US Economic Cooperation Committee from 1984 1988. He was involved in the establishment of three local universities, as the founding chairman of the Council of the Hong Kong Polytechnic in 1972 and was responsible for the establishment of the City Polytechnic in 1984. He oversaw the establishment of the Hong Kong University of Science and Technology (HKUST) in 1991 as the chairman of the planning