CONFIDENTIAL

There could be some parliamentary questioning of why it is necessary to legislate so far in advance for the termination of sovereignty.

The answer is that we need to legislate so

so that

that we can ratify the

agreement.

The reason why we negotiated and concluded an agreement now rather than closer to 1997 was to give Hong Kong the certainty that it needed if stability and prosperity were to be maintained and

if planning for

future was to

The date on which be possible. the termination of sovereignty will take place is known and is not a

reason There is therefore no matter for any further negotiation.

the

avoid including the necessary provisions in the Bill.

to

CONFIDENTIAL

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