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Effect of Relinquishment of Sovereignty

3. On a cession of territory, the existing corpus of

law normally remains in force subject to the powers of

competent authorities to amend or replace particular laws

thereafter as occasion may require.

Requirements of the United Kingdom

4. The United Kingdom will need to ensure that the

existing corpus of law in Hong Kong remains in being in

this way (subject to any adaptations rendered necessary

by the change of status) and that Hong Kong will continue

to have its own properly-constituted legislature.

5.

The UK will also wish to preserve legislative

authority exercisable by Act of Parliament or Order in

Council to the extent that it has powers and jurisdiction

under a 'management contract'.

6.

This need not however exclude constitutional

arrangements for Hong Kong under which the local legislature

has a substantial degree of autonomy, subject to any

necessary safeguards, limitations and exceptions.

Unacceptable changes

7.

In the exercise of its powers to administer the

territory, the UK and the Hong Kong Government must be

free from interference from PRC both in the executive

and the legislative fields. It would not therefore be

acceptable for the PRC to assume legislative powers in

respect of Hong Kong nor to exercise any control over the

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