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5.

The two Governments have agreed that in the second half of the period between the establishment of the Joint Liaison Group and 1 July 1997 there will

be need for closer cooperation, which will therefore

be intensified during that period. Matters for

consideration during this second period shall include:

(a)

procedures to be adopted for the smooth

transition in 1997;

(b)

action to assist the Hong Kong Special Administrative

Region to maintain and develop economic and

cultural relations and conclude agreements on

these matters with states, regions and relevant

international organizations.

€.

The Joint Liaison Group shall be an organ for liaison and not an organ of power. It shall play no

part in the administration of Hong Kong or the Hong Kong Special Administrative Region. Nor shall it have any

supervisory role over that administration.

The members

and supporting staff of the Joint Liaison Group shall

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