SECRET

seek a phrase such as "by 30 June 1985 or as soon as possible thereafter". We consider that the best way to deal with this problem is to seek to amend the relevant paragraph of the agreement so that it would read "This Joint Declaration is subject to ratification and shall enter into force on the date of the exchange of instruments of ratification which, subject to the completion of the necessary procedures in national legislatures, shall take place in Beijing within

of the signing of this Joint. Declaration."

5.

I believe that the Secretary of State had in mind exchange of

instruments of ratification not later than 30 June 1985. This is

the assumption on which we have drafted the attached letters to the

Lord President of the Council and to the Leader of the House.

B

C

6. The Secretary of State agreed to speak to Lord Whitelaw in December 1983 in order to put down a marker on a possible need for

a Hong Kong Bill. We should now write to confirm the Bill.

In

order to ease pressure in the time-table, we could offer to drop the

Foreign Compensation Bill presently included in the programme for

1984-85, but such an offer may be better held in reserve until we have

the reactions of the Lord President and the Leader of the House...

7. We cannot be certain of the precise content of the Bill, until

the negotiations have been concluded. We believe, however, that a

short Bill should be sufficient. It would be necessary to include

provisions about the relinquishment of British sovereignty over Hong

Kong with effect from 1 July 1997. The provision could either take the form of actual relinquishment on that date or of taking an enabling power to be exercised before that date by Order in Council. We hope to avoid the need for the Bill to contain a provision about nationality, but that is still dependent on achieving the right text. Provision will have to be made at some stage for legislative changes

consequential upon the change in Hong Kong's status in 1997.

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