MEMORANDUM,

(Translation)

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The Ministry of Foreign Affairs of the People's Republic of China acknowledges receipt of the Memorandum dated 27 November 1986 of the Embassy of the United Kingdom of Great Britain and Northern Ireland in the People's Republic of China concerning Hong Kong Certificates of Identity and related matters and, with reference to the relevant discussions of the Sino-British Joint Liaison Group, has the honour to elaborate the position and understanding of the Government of the People's Republic of China on the relevant questions raised in the United Kingdom Memorandum as follows:

1.

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In accordance with the relevant provisions in Section XIV of Annex 1 to the Joint Declaration of the Goverment of the People's Republic of China and the Government of the United Kingdom of Great Britain and ** Northern Ireland on the Question of Hong Kong, the Government of the People's Republic of China will allow Certificates of Identity (modified as described in the Annex to the United Kingdom Memorandum and issued by the Hong Kong Government between 1 July 1987 and 30 June 1997 inclusive with the normal ten-year validity) to continue to be used after 30 June 1997 until their due expiry dates

2. The Government of the People's Republic of China will agree that the Hong Kong Government may add an endorsement to Certificates of Identity issued between 1 July 1987 and 30 June 1997 inclusive, to show the holder's right of abode in Hong Kong where the holder has that right.

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3. In accordance with the foregoing, any reference to "Hong Kong' in Certificates of Identity issued between 1 July 1987 and 30 June 1997 inclusive will, on and after 1 July 1997, be taken to mean the "Hong Kong Special Administrative Region". For this, the Government of the People's Republic of China expresses its understanding.

4. The Central People's Government shall authorise the Hong Kong Special Administrative Region Government to issue, on and after 1 July 1997, in accordance with the: law, passports of the Hong Kong Special Administrative Region of the People's Republic of China to all Chinese nationals who hold permanent identity cards of the Hong Kong Special Administrative Region, and travel documents of the Hong Kong Special Administrative Region of the People's Republic of China to all other persona lawfully residing in the Hong Kong Special Administrative Region.

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5. To facilitate travelling abroad by holders of Certificates of Identity, the Government of the People's Republic of China will, when necessary, state to the governments of third countries that holders of Certificates of Identity carrying the endorsement as set out in paragraph 3 of the United Kingdom Memorandum will be entitled to return to the Hong Kong Special Administrative Region after 30 June 1997, and that any reference in them to"Hong Kong" will,” on and after 1 July 1997, be taken to mean the "Hong Kong Special Administrative Region" of the People's Republic of China.

(Sealed).

The Ministry of Foreign Affairs of the People's Republic of China Beijing

27 November 1986

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