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(a) Agreement on Hong Kong's future position in various

international organisations (ILO, FAO, ESCAP, UNCTAD).

Nationality related matters (introduction of British

National (Overseas) passport etc).

(b)

(c)

(d)

Good progress in discussion of defence of Hong Kong and

the maintenance of public order.

Continuing discussions with aviation partners to conclude

separate air service agreements for Hong Kong.

Line to take: British and Chinese Governments are committed to full

and faithful implementation of the JD. Both recognise the importance of this in maintaining Hong Kong's stability and

prosperity.

Drafting of the Basic Law (BL)

We

6. Under the Joint Declaration, the policies of the PRC regarding Hong Kong will be stipulated by China's National People's Congress in a Basic Law. A Drafting Committee (appointed by the NPC and including people from Hong Kong) is at work. A first draft of the Basic Law is expected to be published in early 1988. Line to take: HMG take the closest interest in the drafting of the Basic Law. welcome the fact that Hong Kong people are able to participate in this important task. We have expressed the view to the Chinese government that Hong Kong people will attach the greatest importance to the Basic Law clearly and unambiguously reflecting all the provisions of the Joint Declaration.

British Trade with Hong Kong

7.

Members of the Association have in the past expressed the view that the Hong Kong Government should discriminate in favour of UK products. UK exports to Hong Kong in 1986 comprised about 1.3% of total UK exports, and about 3.4% of total Hong Kong imports. Line

to take: this is a matter for the Hong Kong Government. It welcomes British exports to Hong Kong but takes the view that they must compete with those of other suppliers on their own merits.

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