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(ii)

that meetings of the group would take place by rotation between Hong Kong, London and Peking; or that meetings would not take

place more frequently in Hong Kong than in either of the over venues.

9. Work of the sub-groups would be arranged on a pattern which ensured that they met no more frequently in

Hong Kong than either in London or Peking.

10. The agreement would state that the Joint Group was for consultative purposes and that it would not have an executive function. It would have the following terms of reference:

(a) The Joint Group would exchange information in

order to facilitate implementation of the agreement. The British side would provide appropriate information about the running of the Hong Kong Government and the Chinese side would provide appropriate information on the drafting of the Basic Law.

(b)

(c)

11.

The two sides in the Joint Group would consult on Hong Kong's continued participation in GATT, MFA and the continued application of international treaty obligations affecting Hong Kong.

If the two sides agreed, the Joint Group could create sub-groups to discuss particular issues. If either side refused to discuss a particular issue as inappropriate the Joint Group would have no standing in the matter.

The two sides would undertake to review the work of the Joint Group in 1993, to consider any change in its procedures which might be appropriate for the last years before transfer of sovereignty.

12.

If it is necessary to make any concessions on the discussions of sensitive subjects in the Group, this would be on a basis;

(i)

which circumscribed the scope of discussion as much as possible,

(ii)

which explicitly relegated the topics to the post-1993 phase of the Group's work.

Hong Kong Department

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