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INTRODUCTION TO THE AGREEMENT

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. Each part

of the agreement has the same status. The whole

makes up a formal international agreement or treaty, legally binding

As such it will be registered by the British

in all its parts.

Government at

the United Nations in accordance with its obligations

under Article 102 of the United Nations Charter. This is the

highest and most solemn possible form of commitment between

sovereign states.

19. The Joint Declaration consists in part of linked declarations

by the British and Chinese Governments. 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 on the two governments in

their entirety If the agreement is approved by Parliament it will

be signed and will enter into force on ratification. This last step

will be taken after the necessary legislation has been enacted.

20. Annex one contai ns an elaboration of Chinese policies for the

Hong Kong Special Administrative Region, drafted in response to

the working papers presented by the British side in the course of

the negotiations. 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;

(a)

(b)

the legal system;

(c)

the public service;

(d) the financial system;

external economic relations;

(e)

the economic system;

(f)

(g)

the monetary system;

(h)

shipping;

(i)

civil aviation;

(j) culture and education;

(k)

external relations;

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