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9. The pyal Visit was undoubtedly greatly enjoyed by the Hong Kong people. It was a symbol of the continuing commitment of the UK to Hong Kong, in the period of transition up to 1997; echoed by Her Majesty's own words to the people of Hong Kong: "As you move towards a new phase in your development, our thoughts will always be with you".
IV. Implementation of the Joint Declaration
(a) Contacts with the Chinese Government
10. Over the past year there have been a number of meetings between members of Her Majesty's Government and Chinese Ministers, at which Hong Kong has been discussed. Both sides have reaffirmed their commitment to the full and faithful implementation of the Joint Declaration in the interests of maintaining Hong Kong's prosperity and stability. The historic visit of Her Majesty The Queen to China in October 1986 demonstrated the close and cordial relationship between the UK and China, a relationship in which agreement on the question of Hong Kong has played a significant part.
(b) Sino-British Joint Liaison Group
11. The second, third, fourth and fifth meetings of the Joint Liaison Group have taken place during the period covered by this report. Good progress has been made in agreeing detailed practical arrangements to enable Hong Kong to make a smooth transition from British Dependent Territory to Special Administrative Region of the People's Republic of China in accordance with the Joint Declaration. The Group's principal achievements in this period have been:
(i) Agreement that Hong Kong should be deemed a separate contracting party to the General Agreement on Tariffs and Trade and should continue in that status after 1997 in the name of "Hong Kong, China ". Hong Kong duly became the GATT's 91st contracting party on 23 April 1986.
(ii) Agreement on transitional measures relating to the principal travel and identity documents issued to Hong Kong residents, to avoid any disruption in this important area on 1 July 1997.
(iii) Agreement on the establishment of a standing sub-group of experts to consider the question of the continued application of international rights and obligations affecting Hong Kong. The sub-group has its principal base in Hong Kong and it held its first meetingthere from 15 to 17 October 1986.
(iv) Agreement on the principles for the establishment of a separate Hong Kong Register of Shipping which can be maintained beyond 1997. Necessary work to put this into effect is now going on in Hong Kong.
(v) Agreement on the principles for the conclusion of separate Air Service Agreements between Hong Kong and its aviation partners, which are capable of remaining in force after 1997. The first such Air Service Agreement was signed between the Government of Hong Kong and the Government of the Kingdom of the Netherlands in The Hague on 17 September 1986. Negotiation of other Hong Kong Air Service Agreements is going forward.
(vi) Agreement on the introduction of a new pension scheme for civil servants in Hong
Kong.
(vii) Agreement that Hong Kong should continue its present participation in the Universal Postal Union, the World Meteorological Organisation, the International Maritime Organisation and the International Telecommunication Union after 1997. Consultation is continuing on the practical steps needed to achieve this. So too is consultation on Hong Kong's participation in other international organisations, including the Customs Co-operation Council.
The work of the Group has been taken forward not only at the regular plenary meetings but also by smaller groups of experts meeting on an ad hoc basis to discuss specific issues. The Group's achievements to date have been widely welcomed and appreciated in Hong Kong. The friendly and co-operative atmosphere in which all contacts in and under the Group have taken place is most encouraging and augurs well for the continued close co-operation that will be needed between Britain and China as 1997 approaches.
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