CTWACM (3)

CONFIDENTIAL

Background

1.

Matters relating to human rights are dealt with in Brief No 5,

and the political system in Brief No 6. The latter is the area now

attracting the most attention.

2.

A five-month period of public consultation on the draft Basic

Law was concluded at the end of September. Amendments to the draft

in the light of public comments were considered at meetings of sub-groups of the Basic Law drafting Committee in November and

December. A revised text will then be submitted to the National

People's Congress (NPC) before being released for a second period of

consultation in the spring of 1989.

3. The main recent developments in the draft are the following:

(a) Article 16: the power of the NPC directly to revoke Hong Kong laws has been dropped, and the scope of its power to return laws for

reconsideration has been limited.

(b) Article 17: nationwide laws applicable to Hong Kong are now to be listed, although there is still a third category of such laws "outside the limits of the SAR's autonomy" in addition to those involving defence and foreign affairs. The new fourth paragraph is a retrograde step, allowing the NPC Standing Committee, without consultation with the SAR authorities or the Basic Law Committee, directly to apply undefined "relevant" laws in times of war and

"unrest".

(c) Article 18: there have been significant and welcome changes to the power of jurisdiction of the SAR courts, although there is still no provision making the CPG subject to the jurisdiction of the SAR courts. It is doubtful that this can be achieved. Some problems of

wording remain to be resolved.

(d) Article 169: the revised draft in principle leaves the final power of interpretation of the Basic Law with the NPC, but defines the jurisdiction of the SAR courts more generously than in the first draft. Most welcome is the apparent decision to allow the Hong Kong

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