tems", the People's Republic of China will pursue the follow- ing basic policies regarding Macao:
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(1) In accordance with the provisions of Article 31 of the Constitution of the People's Republic of China, the Peo- ple's Republic of China will establish a Macao Special Administrative Region of the People's Republic of China upon resuming the exercise of sovereignty over Macao.
(2) The Macao Special Administrative Region will be directly under the authority of the Central People's Govern ment of the People's Republic of China, and will enjoy a high degree of autonomy, except in foreign and defence af- fairs which are the responsibilities of the Central People's Government. The Macao Special Administrative Region will be vested with executive, legislative and independent judicial power, including that of final adjudication.
(3) Both the Government and the legislature of the Ma- cao Special Administrative Region will be composed of local inhabitants. The chief executive will be appointed by the Central People's Government on the basis of the results of elections or consultations to be held in Macao. Officials holding principal posts will be nominated by the chief execu- tive of the Macao Special Administrative Region for appoint- ment by the Central People's Government. Public servants (including police) of Chinese nationality and Portuguese and other foreign nationalities previously serving in Macao may remain in employment. Portuguese and other foreign nation- als may be appointed or employed to hold certain public posts in the Macao Special Administrative Region.
(4) The current social and economic systems in Macao will remain unchanged, and so will the life-style. The laws currently in force in Macao will remain basically unchanged. All rights and freedoms of the inhabitants and other per- sons in Macao, including those of the person, of speech, of
the press, of assembly, of association, of travel and move- ment, of strike, of choice of occupation, of academic re- search, of religion and belief, of communication and the ownership of property will be ensured by law in the Macao Special Administrative Region.
(5) The Macao Special Administrative Region will on its own decide policies in the fields of culture, education, science and technology and protect cultural relics in Macao according to law.
In addition to Chinese, Portuguese may also be used in organs of government and in the legislature and the courts in the Macao Special Administrative Region.
(6) The Macao Special Administrative Region may es- tablish mutually beneficial economic relations with Portu- gal and other countries. Due regard will be given to the economic interests of Portugal and other countries in Macao. The interests of the inhabitants of Portuguese descent in Macao will be protected by law.
(7) Using the name "Macao, China", the Macao Special Administrative Region may on its own maintain and develop economic and cultural relations and in this context conclude agreements with states, regions and relevant international organizations.
The Macao Special Administrative Region Government may on its own issue travel documents for entry into and exit from Macao.
(8) The Macao Special Administrative Region will re- main a free port and a separate customs territory in order to develop its economic activities. There will be free flow of capital. The Macao Pataca, as the legal tender of the Macao Special Administrative Region, will continue to cir- culate and remain freely convertible.
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