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BACKGROUND

1.

The Hong Kong Act enabling the UK to ratify the

agreement received the Royal Assent on 4 April. It

provides for the termination of British sovereignty and

jurisdiction over Hong Kong as from 1 July 1997,

subsequent Orders in council to amend British Nationality

Law and to adapt other laws affecting Hong Kong, and

privileges and immunities for Chinese members of the

Joint Liaison Group. We expect to be able to exchange

instruments of ratification with the Chinese in Peking

well before 30 June 1985.

2. A Joint Liaison Group will be established on the

entry into force of the agreement to continue liaison,

consultation and the exchange of information between the

British and Chinese sides until the year 2000 with a view

to the implementation of the Joint Declaration.

We are

discussing the details of the establishment of the Group

with the Chinese. We should limit ourselves, in response

to questions, to stating that its composition will be

announced in due course. A Land Commission made up of

British and Chinese officials will also be established in

Hong Kong after the entry into force of the agreement.

It will conduct consultations on the implementation of

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