CONFIDENTIAL

DSR 11C

Clause 2(2)

5. We wonder whether it may be too restrictive to

describe the schedule as referring to matters which are

"consequential on" the provisions of Section 1, i.e.

consequential on the termination of British sovereignty

as from 1 July 1997. For example, it seems questionable

whether our proposed amendments to the Civil Aviation

Act 1982, referred to in paragraph 18 of the Instructions,

can be said to be consequential on the termination of

sovereignty.

Group

The granting of privileges and immunities to

members of the Joint Liaison does not seem to us to be

consequent upon the termination of sovereignty, but upon

the entry into force of the Joint Declaration. In this

connection it appears that Clause 1(2) does not help, because

the only effect of that provision is to fix the date of

entry into force of Section 1. It may therefore be

preferable to widen the scope of Clause 2(2) so that it

describes the matters contained in the schedule as matters

consequential on, or in anticipation of, Her Majesty

ceasing to have any sovereignty or jurisdiction as

provided in Section 1 of the Act, or consequential on

the entry into force of the Joint Declaration.

Schedule, paragraph 1

6.

My administrators would prefer this paragraph to

appear at the end of the schedule.

CONFIDENTIAL

/We wish

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