CONFIDENTIAL

of municipal law and does not affect the basis question of

whether the Agreement applies to Hong Kong, beyond the fact

that the extension to an enactment in Hong Kong of Legislation

to implement the Agreement would be evidence of the UK's

understanding that the Agreement does apply to Hong Kong.

4.

You may pass the gist of the above to the Chinese:

would be helpful to know if their view of the international

it

position is the same.

SIGNED:

A J RAMSAY

CONFIDENTIAL

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