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become "Hong Kong residents".

(iii)

3.

The draft of the "Basic Law" of the SAR would take

time. The views of the Hong Kong people would be

sought on the draft. The final version would not be

announced before the talks ended [no date

specified].

A further gloss was added by the Communist New Evening Post in

an editorial elaborating on Ji's remarks but not directly

attributing them to him. The editorial described articles in

China's existing consitution which deal with the relationship

between the central authorities and local government, observing that

the central government's leadership over a local government did not

mean monopolising and intervening in everything. The editorial went

on to say that while the NPC Standing Committee had powers to annul

local statutes and decisions if they contravened the constitution,

laws, decrees or resolutions, the "Basic Laws" for the SAR, would

provide a basis for non-intervention from the central government so

long as the local government acted within its powers.

XU JIATUN

4.

Xu's remarks were made in a speech and question and answer session at Hong Kong University on 10 January.

Communist papers used the full text under headlines stressing that Hong Kong's future

was bright. For the most part Xu's speech contained the main,

well-known elements of China's plan, much in line with the 12 points

listed by Vice-Minister Yao in the formal talks. However, on

several points Xu provided some elaboration as compared with earlier Chinese public statements:-

(a) Expatriate and local civil servants in various

government departments, and police officers, may keep their jobs. The definition of their specific duties

will be a matter for the SAR Government to decide.

(b)

Local residents will enjoy the freedoms of speech, the press, assembly, association, (including the right to

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