RESTRICTED

(J) INTERNATIONAL ORGANISATIONS AND AGREEMENTS:

THE MEETING RECOMMENDED THAT SECTION 2 OF CHAPTER 7 SHOULD BE REWRITTEN INTO TWO SECTIONS, VIZ, ONE TO DEAL WITH THE SAR'S PARTICIPATION IN INTERNATIONAL ORGANISATIONS AND THE OTHER TO DEAL WITH THE SIGNING AND IMPLEMENTING OF INTERNATIONAL AGREEMENTS.

(K) INTERPREATION AND AMENDMENT OF THE BASIC LAW:

NEARLY ALL MEMBERS AGREED THAT THE POWERS OF INTERPRETING AND AMENDING THE BASIC LAW SHOULD REST WITH THE NPC. HOWEVER, THE MEETING NOTED THAT THE JOINT DECLARATION HAD STIPULATED THAT THE COURTS OF THE HK SAR SHOULD HAVE THE POWER OF FINAL ADJUDICATION AND IT WOULD BE NECESSARY FOR THE SUPREME COURT TO HAVE SOME POWERS OF INTERPRETING THE BASIC LAW. THERE WAS, HOWEVER, NO CONCLUSION ON HOW THIS SHOULD BE ARRANGED. SOME MEMBERS SUGGESTED THAT A COMMITTEE WITH REPRESENTATIVES FROM THE SAR SHOULD BE SET UP UNDER THE NPC FOR THE INTERPRETATION AND AMENDMENT OF THE BASIC LAW.

(L) BASIC LAW/CHINESE CONSTITUTION RELATIONSHIP:

ALTHOUGH THE MEETING REALIZED THE IMPORTANCE OF MAKING CLEAR THE RELATIONSHIP BETWEEN THE BASIC LAW AND THE CHINESE CONSTITUTION, NO CONSENSUS ON HOW TO ACHIEVE THIS WAS REACHED. HK BLDC MEMBER TAM YIU CHUNG SUGGESTED THAT THE NPC SHOULD GIVE FURTHER EXPLANATION OF THE EFFECT OF ARTICLE 31 OF THE CONSTITUTION WHEN THE BASIC LAW WAS PROMULGATED. SHAO TIENPEN, HOWEVER, EXPRESSED RESERVATIONS AND SAID THAT IT WOULD NOT BE EASY TO AMEND THE CONSTITUTION. SOME MEMBERS SUGGESTED THAT ALL PROVISIONS OF THE CONSTITUTION APPLICABLE TO THE SAR SHOULD BE WRITTEN INTO THE BASIC LAW. THIS WAS OPPOSED BY OTHERS SAYING THAT THE PROPOSAL WAS TECHNICALLY NOT FEASIBLE.

4. IT WAS AGREED THAT THE NEXT TWO MEETINGS OF THIS SPECIAL GROUP WOULD BE HELD TOWARDS THE END OF AUGUST AND SEPTEMBER, AND A REPORT WOULD BE READY FOR SUBMISSION TO THE BLDC FULL MEETING BY OCTOBER. THE NEXT MEETING WOULD TAKE PLACE EITHER IN XIAMEN OR PEKING.

PRESS COMMENTARY

5. ONLY ONE PAPER HAD SO FAR COMMENTED ON THE MEETING: TIN TIN DAILY NEWS COMMENTED THAT THE MEETING HAD AVOIDED THE QUESTION OF WHETHER HK PEOPLE SHOULD ABIDE BY THE CONSTITUTION. IT SAID THAT IT WAS UNTHINKABLE THAT HK PEOPLE WOULD NOT BE SUBJECT TO THE CONSTITUTION, AND ACCUSED SOME MEMBERS OF TRYING TO CREATE A MODEL IN WHICH THE RELATIONSHIP BETWEEN THE SAR AND CHINA WOULD BE SIMILAR TO THE COLONIAL RELATIONSHIP BETWEEN HK AND BRITAIN.

YOUDE

HONG KONG AGREEMENT : RESTRICTED

LIMITED

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RESEARCH D (FE)

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PS/MR RENTON MR WILSON

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