CONFIDENTIAL

The agreement provides that the Special Administrative Region will be served by an elected legislature: that the executive will be accountable to that legislature

and to the courts: and the administration will be in the hands of the local people.

It guarantees that Hong Kong's present system

of law, including the common law, will be maintained.

The present independent judicial system will be continued, but with a court of final appeal

court of final appeal sitting in

Hong Kong.

CONFIDENTIAL

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