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policies will not be practised in the SAR and that Hong Kong will retain its capitalist system and lifestyle for 50 years [Article 4]. These provisions displace the corresponding parts of the Chinese constitution so far as its application to the Special Administrative

Region is concerned.

5. Will Hong Kong enjoy the promised high degree of autonomy?

The draft clearly recognises that Hong Kong will have a high degree of autonomy over a very wide area of government [Article 2]. The People's Republic of China will of course be the sovereign power in Hong Kong. It is therefore to be expected that the draft should

contain provisions which reserve certain powers to the central

authorities. The Joint Declaration makes specific mention of

defence and foreign affairs. Similar reservations exist today.

6.

Executive is not sufficiently accountable to Legislature?

We welcome the clear and specific references in Articles 43 and

64 of the draft Basic Law to the accountability of the executive to the legislature. We believe that the key requirement for Hong Kong

is a system which provides for both checks and balances, as well as cooperation, between the executive and the Legislature. It would

clearly not be appropriate simply to import a system practised

elsewhere, founded on a different political tradition. We believe

that future arrangements in the SAR should evolve from the present

system, which has worked well and is suited to Hong Kong's unique

circumstances.

7.

Grand Electoral College

-

it is

I am aware of criticism of this concept in Hong Kong. If

people have reservations about this idea - or indeed about any of

the options for the election of the Legislature

important that they should come forward with feasible alternatives.

It does not appear that any of the options in the draft is contrary

to the Joint Declaration.

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