CONFIDENTIAL

In

order

therefore to

with the United Kingdom.

avoid massive

changes in the law on 1 July 1997 Hong Kong proposes to embark at once upon a legislative programme to "localise" Hong

to "localise" Hong Kong's laws and

establish a set of self-contained Hong Kong laws free from any

connection with the UK. This section of the Bill will give HMG and

Hong Kong the power to achieve their objective. As part of this process it will thus be possible for Hong Kong to adopt laws free

from the restraints of the Colonial Laws Validity Act 1865, and to

legislate with

extra-territorial effect. Any new Hong Kong laws

will continue to be subject to disallowance by HMG and to other

controls imposed by the Letters Patent and Royal Instructions.

This section also enables HMG to make consequential amendments to

the law of the UK and of dependent territories which are not part of

the law of Hong Kong, but which relate to Hong Kong. This will be necessary for instance in relation to the abolition of appeals to

the Privy Council and to give a greater degree of autonomy

autonomy to Hong

Kong in civil aviation matters by amending the Civil Aviation Act of

1982.

intention of the Chinese

Law before 1990).

We do not yet know what repeals or amendments will be necessary

under each of these categories, nor will we know finally until we

have seen the Basic Law. (The present

Government is to promulgate the Basic therefore need the widest possible power s to make Orders in Council

under this section.

So as

We

Ол

Paragraph 3(1) enables Her Majesty by Order in Council (or the Hong

Kong legislature if so

so authorised by Order in Council) to

to repeal or

amend any UK Act, order, rule or regulation in

SO far as it is part of the law of Hong Kong, if it appears necessary or expedient to do

a result of or in connection with the termination

sovereignty and jurisdiction. This section will enable HMG and the Hong Kong legislature to

to localise the laws of Hong Kong, in SO far

as they currently take the form of UK statutes which apply as part

of the law of Hong Kong. Although this section gives the Hong Kong

legislature the power so to amend UK enactments, it would of course hands in the case of a dispute with Hong Kong to refuse to

be in

CONFIDENTIAL

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