CONFIDENTIAL

CLAUSE ONE

Clause 1 provides for the

of Hong

termination of British sovereignty over

Kong and

termination of British

the

the ceded

parts jurisdiction over the whole territory as from July 1997.

The

i s clause

to

to

implement HMG's commitment in

restore Hong Kong to

from 1 July 1997.

the

of this purpose paragraph 2 of the Joint Declaration People's Republic of China with effect the Joint Declaration nor the Bill seek to resolve the controversial

Neither

legal and historical questions relating to Hong Kong's present status. The Chinese insist that the three treaties relating to Hong

in the British and Chinese Governments

the Kong concluded between nineteenth century are invalid. In their view they have always had sovereignty over the whole of Hong Kong, and are merely resuming the exercise of it. We regard the treaties as valid. We therefore differentiate between the territories ceded by the 1842 Treaty of

Nanking and the 1860 Convention of Peking (over which Her Majesty has sovereignty), and the New Territories leased for 99 years under

the Convention of 1898. We could have drawn a distinction in the

Bill between these two parts, providing for termination of sovereignty over the ceded territories, while letting our lease over

To the New Territories expire by effluxion of time on 30 June 1997.

do

would SO

however simply draw attention to matters which are

disputed between the British and Chinese sides, and which the

agreement

по

on

on

itself successfully sets

one side. The Chinese would

doubt take offence and seek to place their Own view

record.

The Bill therefore simply states that HMG shall no longer have sovereignty or jurisdiction over any part of Hong Kong as from 1

The words 'no longer' are a muted assertion of our

July 1997.

present claims to sovereignty and jurisdiction.

Subsection (1) is the principal provision of the Bill. It provides for the termination of sovereignty and jurisdiction.

Its language

is based partly on the precedent of Section 1 of the Cyprus Act 1960

("and

have Her Majesty shall

по sovereignty or

jurisdiction over the Republic of Cyprus").

on

that day

CONFIDENTIAL

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