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CONFIDENTIAL

DSR 11C

It will be for the Basic Law, and not the

Bill, to provide for this

continuation of

laws

to the Joint Declaration the laws of Hong Kong are to

survive the termination of British sovereignty in

provided

1997, but only if they do not contravene the Basic Law.

The latter will not be drafted by the Chinese for some

years to come, but it is reasonable to assume that it will

require the removal from the Hong Kong statute book of

any laws which appear to maintain links with the United

Kingdom. For this reason, and in order to avoid massive

and dramatic changes in the law on 1 July 1997, Hong Kong

proposes to embark at once upon a legislative programme,

the object of which will be to establish, while under

set

local ordinance, a state of self-contained Hong Kong laws.

They will thus gradually replace those UK statutes and

subordinate UK legislation which at present appli as

part of the law of Hong Kong. For this purpose it will be

necessary for Hong Kong to have the power, between

1985 and 1997, to legislate in a manner which is

inconsistent with the Colonial Laws Validity Act 1865 and

to legislate with extra-territorial effect. It will need

Ras to be given much the same powers as Belize as by virtue of

paragraphs 1-3 of Schedule I to the Belize Act 1981,

although from 1985 to 1997 any new Hong Kong laws will

continue to be subject to disallowance by HMG in the UK

and be subject to the other controls imposed by the Letters

Patent and Royal Instructions, unless and until those

controls should be abolished or changed.

CONFIDENTIAL

/11.

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