CONFIDENTIAL

It provides for Hong Kong to enjoy a high degree of autonomy as a Special Administrative Region of the

People's Republic of China, and makes clear that the

socialist system and policies practised in the mainland

will not be applied to the Special Administrative

Region.

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.

CONFIDENTIAL

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