CONFIDENTIAL

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1. CLAUSE ONE: SPEAKING NOTE FOR CLAUSE STAND PART

Clause 1 is the central provision of this Bill.

It provides for the termination of British sovereignty over the

ceded parts of Hong Kong and the termination of British jurisdiction

over the whole territory from 1 July 1997.

This clause will enable the Government to meet its obligation under

paragraph 2 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.

The clause is designed to come into effect at the same time as the

Joint Declaration. The date of this has not yet been agreed but paragraph 8 of the Joint Declaration states that instruments of

ratification shall be exchanged before 30 June 1985.

In recent years the invariable practice when the UK divests itself

of sovereignty over territory has been to do so upon the authority

of an Act of Parliament. The situation of Hong Kong is of course

different, since in this case we are entering into an agreement with another power to terminate sovereignty as from a certain specified

date. But this does not affect the need for parliamentary authority

for the termination of sovereignty: this authority must exist

before the Government ratifies the agreement and thus creates an international obligation.

I therefore hope that the Committee will accept the clause as

drafted.

CONFIDENTIAL

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