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Hong Kong and HMG were to cease to be responsible for the

government thereof, it must be assumed that an Act of

Parliament would be required.

Expiration of New Territories Lease

5.

Relinquishment of the New Territories upon the

expiration of the international lease on 30 June 1997 would

not in itself require an Act of Parliament. As regards the

possibility of an agreement to surrender the New Territories

to the PRC before that date, there exists a precedent for a

comparable transaction where no Act of Parliament was passed,

the surrender in 1930 of the lease granted by China in 1898

of Wei-hai-wei, which Mr Balfour had offered in 1922 to hand

back to China. The fact the Orders in Council in respect of

Wei-hai-wei were made under the Foreign Jurisdiction Act 1890

indicates, however, that Wei-hai-wei was not regarded as part

of His Majesty's dominions during the currency of the lease.

Since the New Territories are regarded as being part of a

colony, their premature surrender would seem to require an

Act of Parliament.

Novel Arrangements

6. There is no precedent for a situation in which the

UK relinquished its sovereignty over a territory in favour

of another State as part of an agreement with that State

that HMG should continue to have power and jurisdiction to

administer the territory and to conduct external relations

in respect of the territory.

/Necessity for Act of Parliament

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