CONFIDENTIAL

7

It may be helpful if I explain briefly to the House why we

have adopted the Order-in-Council route. There are two considerations. The first is that as we see it, it is

right that this Bill should lay the groundwork for all the legislative activity arising from the agreement: the

measures contained in the Bill arise directly out of the

agreement and the UK memorandum. They were an integral and essential part of the package which was negotiated with

the Chinese Government. They were also a vital part of the arrangements which the people of Hong Kong decided were acceptable for the termination of British sovereignty

in 1997. If they were not covered in the Bill this would raise considerable uncertainty in Hong Kong, and perhaps doubt about whether we intend to live up to our promises. This would be very damaging.

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The second consideration was that in order to meet the

timetable for ratification that is by 30 June 1985 it

necessary for the Bill to be put to Parliament very

early in the New Year. This left insufficient time to

draft the unavoidably complex legislation which will be

necessary, and to carry out the necessary consultations in

Hong Kong. Both drafting and consultation are now taking

place, though they are at a relatively early stage. The

Government have undertaken to bring an Order before the

House as soon as possible, and at the latest within a year of the passage into Law of the Bill I aw

CONFIDENTIAL

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