sufficient system. It is therefore necessary that there should be self-governing powers that are both highly autonomous and comprehensive.
(b) China-HKSAR relationships in terms of political structure and power distribution should be accurately and clearly defined and delineated in the Basic Law. The Basic Law should expressly provide that all residuary powers outside those specifically reserved by the Chinese Central Government (e.g. in diplo- matic and defence affairs, and Basic Law legislation) should belong to the HKSAR Government. There are two advantages to this manner of delineation. One is that, albeit only on the level of general principles, the delineation is clear, and there is little danger of confusion. Secondly, there is no risk of possibly leaving areas undefined. Without special arrangements between, the Central and Local Governments, there should not in principle be any area of concurrent jurisdiction. (c) According to the principies stated in (a) and (b) above, no one should have a right of appeal to the Central Government against a decision of the Hong Kong Government in the rightful exercise of its legislative, executive or judicial powers. The Central Government similarly should not concern itself or deal with any such complaints in connection with the Hong Kong Government's decisions or legis- lation. Obviously, it would be an exception if the complaint involves areas within the Central Govern- ment's jurisdiction.
(d) In order to reinforce the high degree of autonomy of the Hong Kong Government, the Basic Law should expressly provide that all laws applicable in and to Hong Kong must be first passed by the Hong Kong Legislature before they can have any effect in Hong Kong. The Central Government should not legislate directly for Hong Kong. Even where laws are required for diplomatic and defence purposes, such laws should be made by the HKSAR Legislature. Of course, the HKSAR Government is under an obligation to suitably exercise its legisla- tive and executive powers to enable the Central Government to fulfil its legally defined obligations for Hong Kong.
(e) Therefore, as far as Hong Kong's own affairs are con
cerned, the Central and HKSAR Governments would co-ordinate and co-operate with one another under a system of territorial division of powers In affairs affecting the whole nation, only the Central Government can of course have the full powers to act for China. The Central Government is therefore the highest authority.
(3) How should Hong Kong maintain its existing
international links and participation?
(a) in order to maintain the status of Hong Kong as an international financial centre and a free port, the Basic Law should expressly provide for the delegation of powers to the Hong Kong Government in relation to all non-political external affairs. For instance,
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