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the Government of the Kingdom of the Netherlands,

came into force on

26 June 1987. In the area of travel and identity documentation,

arrangements previously agreed in the Group were put into effect in

Hong Kong on 1 July 1987.

6.

Other topics discussed in the Group and in expert meetings over the year included the replacement by local Hong Kong

legislation of United Kingdom statutes applying to Hong Kong and

future arrangements for the judiciary in the territory. The two sides also exchanged views on the progress of the review of

developments in representative government in Hong Kong on the basis

of information provided by the British side.

7.

Work in the Group and among experts was again characterised

by a friendly and co-operative atmosphere and a practical approach

to the resolution of problems. Its achievements have been welcomed

in Hong Kong.

(c)

Land Commission

8.

The Sino-British Land Commission has continued its record of

good progress, reaching agreement on the proposed New Territories Leases (Extension) Bill and on the methods of dealing with leases

for special purposes. Under the terms of the Joint Declaration, premium income from land transactions is shared equally, after

deduction for the average cost of land production, between the Hong

Kong Government and the future Special Administrative Region

Government. To date, more than HK$ 4 Billion has been credited to

the future Special Administrative Region Government's account. The

money is managed in trust by the Chinese side of the Land Commission

for the use of the future Special Administrative Region Government

after 1997. The Commission reached agreement on a land disposal

programme of 74.84 hectares for the period 1 April 1987 to 31 March

1988. This exceeded the annual limit of 50 hectares specified in

Annex III of the Joint Declaration. Thus the Land Commission once

again made sensible use of the provision in the Annex which allows

for flexibility in establishing the annual land disposal limits to

meet requirements.

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