CONFIDENTIAL

PARAGRAPH THREE

Paragraph 3 of

of the Schedule deals with the modification of UK Acts

and subordinate legislation made under them.

Council:

It enables Orders in

(a) to repeal or amend any enactment in so far as it is part of the

law of Hong Kong,

(b) to repeal or amend any enactment in so far as it is a part of

the law of the UK which applies in relation to Hong Kong,

(c) to enable the legislature of Hong Kong to repeal or

enactment in so far as it is part of the law of Hong Kong,

amend any

(d) to enable the legislature of Hong Kong to legislate with

extra-territorial effect.

When a

dependent territory becomes independent it

it is customary in

the Independence Act:

(i)

(ii)

to amend UK enactments applying to the territory;

to provide that all UK laws which have hitherto applied as a

part of the laws of the territory shall continue to apply as part

of the law of the newly independent state;

(iii) to enable the legislature of that state to repeal or amend

those laws, and

(iv) to enable that legislature to legislate with extra-

territorial effect.

In the case of Hong Kong these matters have to be dealt with differently. Under the agreement the laws of Hong Kong will survive

the termination of British sovereignty in 1997 provided that they do

not conflict with the Basic Law. The latter is expected to require the removal from those laws of any which appears to maintain links

CONFIDENTIAL

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