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CONFIDENTIAL

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My Lords, following the signature of the agreement, Governments in both China and the UK have to satisfy their constitutional requirements in order to ratify the

agreement. The purpose of the Bill before us today is to

enable Her Majesty's Government for their part to ratify

the agreement.

The central provision of the Bill is Clause 1 which This

provides for the termination of British sovereignty over

the ceded parts of Hong Kong and the termination of

British jurisdiction over the whole territory with effect

from 1 July 1997. The Clause will enable the Government

to meet their obligation under paragraph 2 of the Joint

Declaration in which the Government of the United Kingdom

declare that they will restore Hong Kong to the People's

Republic of China with effect from 1 July 1997.

The Clause will enter

instruments of ratification.

into force on the exchange of

CONFIDENTIAL

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