CONFIDENTIAL

which people of Hong Kong can plan ahead.

Chinese constitution to apply to Hong Kong after 1997? Possible

conflict between Basic Law/Chinese constitution?

22. We expect Basic law to make

law to make clear which provisions of Chinese constitution apply to Hong Kong. Cannot conceive that the Basic Law

will conflict with the Chinese constitution. The Chinese will be

drafting the Basic Law

Law and will ensure that it does not conflict.

Agreement makes absolutely clear that socialist system and policies practised on mainland will not be practised in Hong Kong after 1997.

Responsibility for interpretation of Basic Law?

23.

The Basic Law will be one of the laws of the Hong Kong Special Administrative Region. The Courts of the SAR must decide cases in

accordance with those laws. Power s of final adjudication will be

not however say which

responsibility for the

vested in those courts. The agreement does not

court of the SAR is to have the final

interpretation and application of the Basic Law.

Basic Law will embody Chinese policies for

Joint Declaration and elaborated in Annex I.

Hong

Key point is the

Kong set out in

CONFIDENTIAL

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