But we must, of course, recognise that the Joint declaration provides for a high degree of autonomy, not independence. It is a matter of getting the balance right between due recognition of Chinese sovereignty and Hong Kong's legitimate concerns to preserve a high degree of autonomy after 1997. The Chinese have recognised, rightly, that the present draft is by no means complete and that further consideration needs to be given to various Articles. One can well envisage the kind of amendments which could be made in this case. The role of the Basic Law Committee (Articles 169-170) as a machinery to reconcile differences between the central authorities and Hong Kong also deserves attention. This could perhaps fit in with Sir William Wade's idea of an institution along the lines of a constitutional court, to which you referred. Its role and composition would of course
need careful study.
Secondly, on human rights, we are well aware of concerns about the way in which the draft provides for the
implementation of the International Covenants. So too, we believe, are the Chinese authorities. We think it should be possible to resolve the matter by drafting improvements, and perhaps by incorporating the Covenants by reference.
Thirdly, the political system. I note your view on the Grand Electoral College and the composition of the Legislature. This is, as you know, one part of the draft Basic Law on which views in Hong Kong are still divided, and where the draft provides alternative solutions. I hope that it will be possible to reach a consensus in Hong Kong, which will necessarily involve a willingness on all sides to compromise. As for Article 171 and Annex III, we recognise that it is right for the arrangements for the first SAR Government clearly to mark the change of sovereignty. But to maintain confidence in Hong Kong it is equally important that there should be continuity and a smooth transfer of government in 1997.
We
Fourthly, Article 172 and the power of annulment. doubt if this will, in the event, be a problem. Before 1997, the Hong Kong Government will take measures to bring Hong Kong laws into line with the provision of the Basic Law, for example by removing inappropriate references to the Crown and the Governor or use of the term "Colony". It is envisaged that by the time of the handover there will be no laws in Hong Kong which contravene the Basic Law.
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