Annex. The work of the Joint Liaison Group shall remain confidential unless otherwise agreed.
II. Sino-Portuguese Land Group
1. The two Governments have agreed that, with effect from the entry into force of the Joint Declaration, land leases in Macao and related matters shall be dealt with in accordance with the following provisions:
(a) Leases of land granted previously by the Portuguese Macao Government that expire before 19 December 1999, except temporary leascs and leases for special purposes, may, in accordance with the relevant laws and regulations currently in force, be extended for a period expiring not later than 19 December 2049, with a premium to be collect- ed.
(b) From the entry into force of the joint Declaration until 19 December 1999 and in accordance with the relevant laws and regulations currently in force, new leases of land may be granted by the Portuguese Macao Government for terms expiring not later than 19 December 2049, with a premium to be collected.
(c) The total amount of new land, including fields re- claimed from the sea and undeveloped land, to be granted under Section II. paragraph 1 (b) of this Annex shall be limited to 20 hectares a year. The Land Group may, on the basis of the proposals of the Portuguese Macao Govern- ment, examine any change in the above-mentioned quota and make decisions accordingly.
(d) From the entry into force of the Joint Declaration until 19 December 1999, all incomes obtained by the Por- tuguese Macao Government from granting new leases and renewing leases shall, after deduction of the average cost
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