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ANNEX A

SUMMARY OF MAIN PROVISIONS OF FIRST ANNEX TO THE JOINT DECLARATION

Section I: Constitutional Arrangements and Government Structure

The key points in this section are that a Basic Law will be enacted

by China, stipulating that the socialist system and socialist policies practised in the PRC shall not be extended to the Hong Kong Special Administrative Region (SAR) and that Hong Kong's capitalist system and lifestyle shall remain unchanged for 50 years. Except in relation to foreign affairs and defence, the Hong Kong SAR will

enjoy a high degree of autonomy, including executive, legislative and independent judicial power. The Government and legislature of the Hong Kong SAR will be composed of local inhabitants. The Chief

Executive will be selected by election or through consultations held

locally and will be appointed by the Central People's Government.

The legislature will be constituted by elections. The executive

authorities will be required to act in accordance with the law and

will be accountable to the legislature.

Section II: The legal system

This section describes how the Hong Kong SAR will have its own legal

system and laws after 1997. The law of the SAR will include the laws previously in force in Hong Kong (ie in the common law, rules

of equity, ordinances, subordinate legislation and customary law)

and laws passed by the legislature of the SAR, provided they do not

contravene the Basic Law, which will stipulate the policies set out

in the Joint Declaration.

Section III: The Judicial System

This section provides for the maintenance of Hong Kong's existing judicial system essentially unchanged. The system of appeals to the

Privy Council will be replaced by a system based on a Court of Final Appeal in Hong Kong, which may as required invite judges from other

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