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CONFIDENTIAL

NATO REGIONAL EXPERT WORKING GROUP ON EASTERN AND SOUTHERN

ASIA: HONG KONG

1.

Implementation of Joint Declaration on Hong Kong, to

which both Chinese and British Governments are committed,

going smoothly. Joint Declarati on entered into force on

27 May and registered at UN on 12 June.

2.

First meeting of Sino-British Joint Liaison Group,

established under Ann ex II to the Joint Declaration, took

place in London from 22-25 July. Meeting took place in a relaxed and workmanlike atmosphere. Agreed Group's working procedures and practical arrangements for Hong Kong continuing

to be a member of the Asian Development Bank after 1 July

1997.

Discussion of these topics will continue at second meeting of

Joint Liaison Group from 26-29 November in Peking.

3.

Sino-British Land Commission, established under Annex

III to Joint Declaration, has also got off to a good start.

Agreed land disposal programme for 1985-86. Land market in

Hong Kong has shown signs of a strong recovery.

4.

Chinese are

Chinese have begun work on drafting of Basic Law, which

will be constitution of Hong Kong Special Administrative

Region after 1 July 1997. Basic Law will include policies set

out in Joint Declaration itself and in Annex I.

consulting Hong Kong people on a wide basis,

participation of Hong Kong people on Basic

Committee and by

establishment of

Committee in Hong Kong.

both through

Law Drafting

Basic Law

Consultative

THIS IS A COPY

THE ORIGINAL HAS BEEN CLOSED FOR

40...YEARS UNDER FOI EXEMPTION No. 271)...--.

CONFIDENTIAL

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