(c)

the public service;

(d)

the financial system;

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(e) the economic system and external economic relations;

the monetary system;

(f)

(g)

shipping;

(h)

civil aviation;

(i)

culture and education;

(j) external relations;

(k) defence, security and public order;

(L)

? (m)

22.

rights and freedoms.

nationality

The joint liaison group will

Annex two sets out the provisions concerning the establishment

of a Sino-British joint liaison group.

be established on the entry into force of the agreement and will

meet in Peking, London and Hong Kong. From 1 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.

23.

Annex three sets out provisions governing land. [To be

expanded.]

24-

The agreement sets out clearly the relationship between the

provisions which it contains and the Basic Law of the Hong Kong

Special Administrative Region, to be promulgated by the National

People's Congress of the People's Republic of China. Article 3 (12)

of the joint declaration provides that the basic policies in the

joint declaration and the elaboration of them in Annex 1 will be

stipulated in the Basic Law. They will remain unchanged for 50

years.

25. Part Three of this White Paper contains further explanatory

notes on the text of the agreement and its annexes.

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