CONFIDENTIAL

the Hong Kong dollar will be freely convertible.

Investors will be able to put in or withdraw their capital freely. The Special Administrative Region will

be able to determine its own shipping policies and to negotiate its own air service arrangements for

international flights which do not touch on the mainland

of China.

Existing land rights will be recognised

after 1997, and the Hong Kong Government will

be able to grant new leases extending up to 2047.

CONFIDENTIAL

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