CRS-9

ment be run by the "people" of Hong Kong. He added that the PRC will not

appoint any officer of the Hong Kong Government.

Hong Kong's official status

would be as a special autonomous administrative zone, which has been legally

established in article 31 of the recent PRC constitution.

Beijing says it

5/ will use the same legal device when Taiwan is reunified with the mainland.

Liao also gave other details in China's position, which he indicated

would be completely worked out once Beijing finishes drafting plans for

Hong Kong's future "in around a year. He said:

to

The new Hong Kong Government will continue to employ the current

force of civil servants. Expatriate civil servants may stay on their

jobs if they wish.

-The Chinese national flag and Hong Kong flag will fly side by side

on Hong Kong soil.

-The Hong Kong dollar will be retained as an international currency.

--Passports for Hong Kong citizens will bear the description of nation-

ality "China-Hong Kong."

Hong Kong citizens will continue to have the freedom of overseas

travel.

-The present judiciary and legal system will be maintained, but all

legal proceedings will be confined to Hong Kong. There will be no

appeals to the British Privy Council or to China.

-Horse racing will be allowed except that the Royal Hong Kong Jockey

Club will have the word "royal" deleted. All other entertainment estab-

lishments will continue as Hong Kong citizens see fit.

5/ Beijing's position is reviewed in Far Eastern Economic Review. May 5, 1983.

P. 13.

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