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DRAFT MINUTE FROM THE SECRETARY OF STATE TO THE PRIME MINISTER

FUTURE OF HONG KONG : LEGISLATION

1. Our negotiations with the Chinese are proceeding well in terms of timing and we still hope to be able to initial a draft agreement by the end of September. We have been giving thought to the legislative consequences of this. I attach a paper, which I suggest should be considered at the OD (K) meeting on 12 September, on the

content and form of the legislation which we will need to enact

before July 1985. If the Sub-Committee agreed to the paper, I would

then seek the agreement of QL to the inclusion of a Hong Kong Bill in the Legislative Programme which begins this November and will arrange, in consultation with interested Departments, for instruc- tions to be prepared and sent to Parliamentary Counsel soon after the initialling of the agreement.

2. Parliament will have been given an opportunity to debate the

White Paper on the Agreement in December, before signature, and we

hope that the legislation will not itself be controversial. We propose to leave the more controversial aspects, such as the substance of the necessary amendments of the British Nationality Act

1981, to a later stage, as legislation on these points will not be

essential before we ratify. We will, however, have to legislate on

these aspects at some time before 1997, as well as arranging for

some UK legislation to be replaced by Hong Kong legislation before

that date.

3. The essential need in my view is to press ahead with early

legislation on the central element, namely, the divesting of

sovereignty, so that we can ratify by July 1985.

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