INTRODUCTION TO THE AGREEMENT

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18. The full text of the draft agreement is included as Part Two of

this White Paper. It consists of a joint declaration and three

annexes together with an associated exchange of memoranda on

nationality. Each part of the agreement has the same status. The

whole makes up a formal international agreement, legally binding in all its parts. An international agreement of this kind is the

highest possible form of commitment between sovereign states.

19. The Joint Declaration consists in part of linked declarations

by the British and Chinese Governments. In paragraph one the government of the People's Republic of China declare that they will

resume the exercise of sovereignty over Hong Kong on 1 July 1997.

In paragraph two the British Government declares that it will

restore Hong Kong to the Government of the People's Republic of

China from that date. In paragraph three the Chinese Government

sets out its policies towards Hong Kong after 1997. In paragraph 4

the two Governments jointly declare that the British Government will

remain responsible for the administration of Hong Kong up to 1997.

Paragraphs 5 and 6 deal with the Joint Liaison Group and land.

Paragraph 6 constitutes the formal link between the declarations by

the two parties; together with paragraph 7 it has the effect of

making the joint declaration and the annexes to it legally binding in their entirety on the two governments. If the agreement is approved by Parliament it will be signed and will enter into force

on ratification. This last step will be taken as soon as possible

after the necessary legislation has been enacted.

20. Annex one contains an elaboration of Chinese policies for the

Hong Kong Special Administrative Region. The annex deals in detail with the way Hong Kong will run after 1 July 1997, and describes the

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

covers:

constitutional arrangements and government structure;

the legal system;

(a)

(b)

(c)

the public service;

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