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the extent of the autonomy and continuity which will prevail then.

It covers:

(a)

(b)

constitutional arrangements and government structure;

the legal system;

(c) the public service;

(d)

the financial system;

(e)

( f )

the economic system and external economic relations;

the monetary system;

(g)

shipping;

(h)

civil aviation;

(i)

culture and education;

(j) external relations;

(k) defence, security and public order;

(1)

rights and freedoms;

(m)

23.

right of abode, travel documents and immigration.

Annex two sets out the provisions concerning the establishment

The joint liaison group will of the agreement and will

of a Sino-British joint liaison group.

be established on the entry into force

meet in Peking, London and Hong Kong. From July 1988 it will be

based in Hong Kong, although it will also continue to meet in Peking

and London. It will continue its work until 1 January 2000. The

annex includes terms of reference which clearly indicate that the group will be a forum for liaison only and not an organ of power. It will neither play a part in the administration of Hong Kong or

have any supervisory role.

24. Annex three deals with land leases. It covers leases that have

already been issued by the Hong Kong Government, leases issued

between the entry into force of the agreement and 1997, and leases

issued thereafter.

25. Associated with the Agreement is a separate Exchange of

Memoranda on nationality. The Memoranda were exchanged in Peking

immediately before the initialling of the Agreement.

26.

Part Three of this White Paper contains further explanatory

notes on the text of the agreement, its annexes and the exchange of

memoranda.

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