CONFIDENTIAL
DSR 11C
would
connection it wiH/be possible for the Bill to deal only
with the ceded territories and for the UK's interest in
the New Territories to terminate by effluxion of time.
However to do so could be misconstrued in Peking and
elsewhere, particularly since the nature of the UK's
interest under the "lease" is not without controversy,
It may therefore be preferable for the Bill to avoid
rease to
drawing any distinction between the constituent parts of
Hong Kong. It could for example provide that with effect
from 1 July 1997 Her Majesty will have ne sovereignty or
jurisdiction over any part of Hong Kong. A provision on
the latter lines is the preferred option.
{
3. The next question is whether the Bill should itself
provide for termination of UK sovereignty, or should enable
an Order in Council to be made for that purpose. The issue
Je Foreyu a commonweath seph's inmunte of 5 November (paper c) was canvassed in
L
and Ministers have now decided
to opt for the former course. There is no constitutional
impediment to Parliament in terminating sovereignty in that
way, with effect only from 1 July 1997, and the Attorney
that
General prefers this option (paper option (paper
his minute of
11 October).
Privileges & Immunities
4.
The second prerequisite for ratification of the Joint
Declaration will be provision for privileges and immunities
Siar-bortish)
for the members of the Joint Liaison Group. The Group
will be set up in accordance with Annex II to the Joint
CONFIDENTIAL
/Declaration