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it is the one which most nearly coincides with the Chinese view of
the status of Hong Kong.
3.
Provision for Administration of New Territories
The purpose of Article III is to make clear that the Hong Kong
Government will be acting within its legal rights in contemplating
a future beyond 1997, and may continue as the lawful government of
the New Territories after that date. It will minimise the risk of
a challenge to local legislation in the Hong Kong Courts, which
could be very damaging for confidence. The inclusion of the phrase
"and the Governor shall continue to exercise executive authority
in the same" is to provide for the legality of administative as
well as legislative action after 1997.
4. Saving
The final Article is designed to protect the rights of the
Crown in the New Territories under the 1898 Treaty, and thus to
counter any accusation that in providing for undetermined leases we
envisage that they might end before 1997 as well as after that date.
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