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FIRST DRAFT OF PART THREE OF THE WHITE PAPER

EXPLANATORY NOTES

1.

The following notes are intended to explain and amplify the detailed material in the annexes. They do not seek to be a comprehensive guide and do not include every point in the annexes, especially where the implication of particular points are so clear as to need no further explanation.

ANNEX 1: ELABORATION BY THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF

CHINA OF ITS BASIC POLICIES REGARDING HONG KONG

(A)

CONSTITUTIONAL ARRANGEMENTS AND GOVERNMENT STRUCTURE

1.

The essential constitutional arrangements for the SAR will be set out in the Basic Law, which the Chinese Government has told the British Government they think can be passed by about 1990. The Chinese Government have indicated publicly that they will consult opinion in Hong Kong widely during the period of preparation of the Basic Law. Under paragraph 3(4) of the Joint Declaration the Basic Law will stipulate the basic policies contained in this agreement and its annexes. The Basic Law will be the constitutional instrument which under the terms of the Chinese Constitution allows policies different from those in mainland China to be pursued in the

SAR.

2.

The essential details of the high degree of autonomy which the SAR will enjoy are contained in Part I of Annex one. Paragraph two of this section indicates that the constitutional link will run directly from the SAR Government to the Central Government in Peking, without passing through any subordinate level of Government such as a provincial government. Apart from foreign and defence affairs which, just as they are now formally the responsibility of the United Kingdom, will be the responsibility of the Central Government, the SAR will have the power to govern itself, to make its own laws, and to run its own courts, including a court of final appeal. Naturally appeals to the Privy Council in London will

cease.

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