CONFIDENTIAL

DECIDED BY THE CHINESE SIDE?

Annex I represents a highly detailed statement of Chinese policies towards Hong Kong after 1997. Over the last two years spent much time discussing with the Chinese the way Hong Kong works, and these

discussions are fully reflected in the scope and substance of the

Annex. This wealth of detail will greatly help confidence in Hong

Kong.

30. WILL IT BE THE SYSTEMS EXISTING NOW, OR THE SYSTEMS EXISTING IN

1997 WHICH WILL BE CONTINUED IN THE SAR?

The two sides have made it clear they are working for maximum degree

of continuity. Clearly there will be a certain evolution up to

1997.

31.

Yes.

WILL THE ANNEXES BE EQUALLY BINDING?

This is explicitly stated in the agreement.

SECTION I: CONSTITUTION

32. WILL THE CHINESE CONSTITUTION APPLY TO HONG KONG AFTER 1997?

We expect Basic Law to make it clear which provisions of Chinese Constitution apply to Hong Kong. Agreement makes it clear that

socialist system and policies practised on mainland will not be will

not be practised in Hong Kong after 1997.

33. WILL PEOPLE OF HONG KONG HAVE A SAY IN DRAFTING OF BASIC LAW?

Drafting of Basic Law a matter for the Chinese Government. They

have made it clear however that people of Hong Kong will be

consulted. Policies stated in Joint Declaration and Annex I will be

stipulated in Basic Law.

34. WHAT DEGREE OF AUTONOMY WILL THE SAR ENJOY?

SAR will enjoy a high degree of autonomy. Foreign and defence affairs will be the responsibility of the PRC. The SAR will have its own executive, legislature and courts.

35. WHY IS THE STRUCTURE OF GOVERNMENT IN THE SAR NOT SPELT OUT IN

GREATER DETAIL?

Detailed structure of government is a matter for the Basic Law.

CONFIDENTIAL

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