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(B) SOVEREIGNTY. FROM THE HONG KONG STANDPOINT VE MUCH PPEFER THE SECOND OF THE TWO ALTERNATIVE METHODS OF PROCEEDING SET OUT IN PARA 7(A) OF YOUR PAPER (AN ENABLING CLAUSE IN THE BILL GIVING POWER TO MAKE AN ORDER-IN-COUNCIL AT A LATER DATE). YOUR PAPER RECOGNISES THAT MEMBERS OF PARLIAMENT MAY TAKE THE VIEW THAT PARLIAMENT SHOULD SEE THE BASIC LAW BEFORE TAKING A FINAL DECISION. PEOPLE HERE ARE LIKELY TO SHARE THIS VIEW. INDEED, THEY MAY WELL FEEL THAT IT WOULD BE WRONG TO PROVIDE IRREVOCABLY FOR THE TERMIN- ATION OF SOVEREIGNTY SO FAR IN ADVANCE OF THE DRAFTING AND PUBLICA- TION OF THE BASIC LAW (SEE ALSO PARA 8 OF HONG KONG TELNO 797 OF 24 MARCH). WE RECOGNISE THAT THE CHINESE WILL EXPECT THE TRANSFER OF SOVEREIGNTY TO BE DEALT WITH BEFORE RATIFICATION TAKES PLACE. BUT WE BELIEVE THAT IT SHOULD BE PERFECTLY POSSIBLE TO EXPLAIN TO THEM THAT YOUR SECOND OPTION FULLY MEETS THEIR CONCERNS SINCE IT WOULD GIVE THE SECRETARY OF STATE THE LEGAL AUTHORITY TO CARRY OUT THE UNDERTAKINGS CONTAINED IN THE JOINT DECLARATION ON THE DUE
DATE.
(C) WE NOTE YOUR INTENTION TO PROVIDE FOR AMENDMENT AND REPEAL OF UK LEGISLATION RELATING TO HONG KONG WITH EFFECT FROM 1 JULY 1997. BUT WE NOTE THAT YOU ALSO PROPOSE TO DEAL WITH MODIFICATION OF UK
AS ENACTMENTS IN PREPARATION FOR TERMINATION OF SOVEREIGNTY. IF, WE ASSUME, YOU HAVE IN MIND THE NEED FOR LOCALISATION OF LEGISLATION BEFORE 1997, THE OBVERSE CONSIDERATION IS ENLARGEMENT OF HONG KONG'S LEGISLATIVE POWERS. WE THEREFORE THINK IT NECESSARY THAT THE BILL SHOULD CONFER UPON THE HONG KONG LEGISLATURE POWERS ANALOGOUS TO INDEPENDENCE. MANY OF THOSE ORDINARILY CONFERRED AT THE TIME OF WE HAVE IN MIND THE POWERS :-
A) TO LEGISLATE WITH EXTRATERRITORIAL EFFECT:
B) TO DISAPPLY ORDERS IN COUNCIL WHICH ARE SOURCES OF HONG KONG
LAW:
C) TO LEGISLATE FREE OF THE REPUGNANCY PROVISIONS OF THE COLONIAL LAWS VALIDITY ACT 1865.
CONTROL OF THESE LEGISLATIVE POWERS IN RESPECT OF MATTERS TOUCHING SOVEREIGNTY OR DEFENCE WOULD REMAIN IN THE LETTERS PATENT AND ROYAL INSTRUCTIONS. THE NEED FOR SUCH LEGISLATIVE POWERS WAS RAISED BY ASHLEY GREENWOOD DURING HIS CONSULTANCY ON TREATIES. HE WOULD BE WELL PLACED TO DISCUSS THE MATTER WITH YOUR LEGAL ADVISERS AND WE WOULD RECOMMEND THAT HE BE ASKED TO DO SO.
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