SECURITY CLASSIFICATION

Top Secret

Secret

centre.

DSR 11C (Revised 5/87)

The Hong Kong Government are embarking on a

number of ambitious new infrastructure projects; and the

construction of a third University has begun.

Confidential

Restricted

Unclassified

PRIVACY MARKING

In Confidence

17.

Four years after the signing of the Joint

Declaration, Hong Kong is as dynamically successful as it

has ever been; and its people are enjoying an

unprecedented level of prosperity.

By providing a clear

and detailed blue print for Hong Kong's future for 1997

and by creating the conditions in what economic relations

between Hong Kong and China have been able to develop

rapidly the Joint Declaration has undoubtedly contributed

significantly to this success.

VII: Implementation of the Joint Declaration

18.

Since the signature and ratification of the Joint

Declaration, the two Governments have been fully engaged

in the work of implementing its provisions. The main

forum for this work is the Sino-British Joint Liaison

Group (JLG). The terms of reference for the JLG are

prescribed in detail in Annex II to the Joint

Declaration. Its functions are:

(a)

(b)

to conduct consultations on the

implementation of the Joint Declaration;

to discuss matters relating to the

smooth transfer of Government in 1997;

(c) to exchange information and conduct

consultations on such subjects as may

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