9.
SECRET
PARAGRAPH (C),3: THERE IS DUPLICATION BETWEEN THE FIRST SENTENCE AND THE FIRST SENTENCE OF PARAGRAPH C, 1.
10.
PARAGRAPH (C),3: SECOND AND THIRD SENTENCES SHOULD BE RE-WRITTEN TO READ:
**APPOINTMENT AND PROMOTION WILL CONTINUE TO BE ON THE
BASIS OF QUALIFICATIONS, EXPERIENCE AND ABILITY. THE PRESENT SPECIAL BODIES DEALING WITH APPOINTMENT, PAY AND CONDITIONS OF SERVICE (IE THE PUBLIC SERVICE COMMISSION AND THE TWO
BODIES DEALING WITH CIVIL SERVICE SALARIES AND CONDITIONS OF
SERVICE) WILL CONTINUE TO OPERATE.*
THE PRESENT DRAFT USES WORDING WHICH WE HAVE DROPPED DURING
DISCUSSION WITH THE CHINESE AND PERHAPS GOES TOO FAR IN IMPLYING
THAT (NEXT WORD UNDERLINED) ALL APPOINTMENTS AND PROMOTIONS WILL BE MADE BY AN INDEPENDENT PSC.
11.
PARAGRAPH (D),1; FIRST SENTENCE SHOULD REFER TO 'THIS SECTION OF THE ANNEX''.
12.
PARAGRAPH (D),1, FOURTH SENTENCE: THE END OF THIS SENTENCE SHOULD BE RE-WRITTEN TO READ:
**TO BE USED ONLY FOR THE BENEFIT OF THE SAR**.
THE TEXT DELIBERATELY ALLOWS FOR A WIDER DEFINTION THAN SIMPLY
USED WITHIN THE SAR ITSELF.
13.
PARAGRAPH (E),3: SECOND AND THIRD SENTENCES SHOULD BE RE-WRITTEN TO READ:
**THIS PART OF THE ANNEX PROVIDES FOR THE SAR TO BE A SEPARATE CUSTOMS TERRITORY. IT ALSO PROVIDES FOR THE SAR'S
CONTINUED PARTICIPATION IN THE GATT AND OTHER BODIES.''
THE PRESENT WORDING IMPLIES THAT IT IS ALREADY AGREED (BOTH BY CHINA AND THE GATT) THAT THE SAR SHOULD PARTICIPATE IN ITS OWN RIGHT.
14.
PARAGRAPH (F),1:
(A) BETTER NOT TO SAY ''THE MAIN PURPOSE WHICH IMPLIES (TRUE
THOUGH IT MAY BE) THAT THE ANNEX FULFILS A UK PURPOSE.
15.
(B) AMEND LAST SENTENCE TO READ:
''THE CURRENCY WILL REMAIN FREELY CONVERTIBLE.**
PARAGRAPH 1 (G) 1: INSERT AT THE REGINNING OF THE SECOND
SENTENCE: **THE ANNEX MAKES CLEAR THAT THE SAR.... ** TO AVOID
ANY SUGGESTIONS THAT HMG WAS STATING POST 1997 POLICY.
16.
PARAGRAPH (G),2: CHANGE **MAKE BILATERAL AGREEMENTS'' TO **CONCLUDE AGREEMENTS
17.
PARAGRAPH (1),2: DELETE AND EDUCATIONAL'', CHANGE
**MAKE BILATERAL AGREEMENTS IN THEM*' TO ''CONCLUDE NEW ONES''.
-2- SECRET
/18