CONFIDENTIAL

Termination of Sovereignty

The central provision of the Bill is Clause One. This provides for the termination of British sovereignty over the ceded parts of Hong Kong and the

British jurisdiction over the whole

effect from 1 July 1997.

termination of

territory with

This

Clause will enable the Government to meet its

obligation under paragraph two of the Joint Declaration

in which the Government of the United Kingdom declares that it will restore Hong Kong to the People's Republic of China with effect from 1 July 1997.

CONFIDENTIAL

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