1.

CONSTITUTIONAL AND POLITICAL BACKGROUND

Hong Kong consists of:

(a)

(b)

(c)

Hong Kong Island, ceded by China by the Treaty of Nanking (1842); the Kowloon peninsula and Stonecutters' Island, ceded in 1860 by

and the First Convention of Peking;

the New Territories, which China leased to Britain for 99 years in 1898 by the Second Convention of Peking.

Its total land area is 1,064 square kilometres and it has a population

The New Territories of over 5.5 million, of whom 98% are Chinese. account for approximately 92% of Hong Kong's total area and more than 50% of its total population.

As

Hong Kong is a Dependent Territory and the Secretary of State for Foreign and Commonwealth Affairs is responsible to Parliament for its government. The Territory is administered by a Governor, with the help of an Executive Council and a Legislative Council. Hong Kong is a dependent territory, there is no British Embassy there. British trade interests are dealt with by the British Trade

Included within Commission, which also covers trade with Macao.

the Commission is a China Trade Unit which is responsible for trade with China through Hong Kong, and also, under the supervision of the British Embassy in Peking, for promoting British trade with the provinces of southern China.

The Crown

The Governor, who represents the Crown, is the head of government and has the power to make laws (called "ordinances") for the "peace,

His authority derives order and good government" of Hong Kong. from the Letters Patent and the Royal Instructions. reserves the power to disallow ordinances enacted in Hong Kong and

In practice, to legislate for the Territory by Order in Council.

English no post-war British Government has exercised this power. common law and the rules of equity are in force in Hong Kong, extended and modified as necessary by local legislation.

The Governor is advised by an Executive Council (known as "EXCO") which currently consists of 16 members:

(a)

(b)

4 ex-officio members (the Chief Secretary, the Commander of British Forces, the Financial Secretary and the Attorney General); and

12 other members appointed by the Governor, of whom 2 are Official (ie members of the Hong Kong Government) and 10 are Unofficial.

The Governor is required to consult EXCO on all major issues of public policy. He is not obliged to accept the advice he receives, but if he does not he must report his reasons to HMG.

The Governor legislates with the advice and consent of the Legislative Council (known as "LEGCO") which comprises 56 members apart from the Governor himself:

(a)

(b) (c)

3 ex-officio members (the Chief Secretary, the Financial Secretary and the Attorney General);

7 Official members nominated by the Governor;

46 Unofficial members (22 nominated by the Governor and 24 indirectly elected).

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