greater part of the Basic Law falls into the first
category, reproducing provisions of the Joint Declaration in satisfactory (and often verbatim) form.
Under the Joint Declaration, the Chinese Government has responsibility for the Basic Law. Our influence on the drafting process has nevertheless been extensive and important. While taking due account of sensitivities in public, we have worked hard in private discussions with them behind the scenes to ensure that the Basic Law complies with the Joint Declaration. This approach has paid off: the Chinese have made it clear that they value our contribution and have accepted many of our ideas. have also secured the tacit acknowledgement by the Chinese of Parliament's right to debate the draft and to have their views passed to the authorities in Peking.
We
Annex II contains a summary of the changes which we know have already been made to the first draft, at least in part in response to our representations and those of the Governor of Hong Kong. Our assessment of the position now is that all the provisions of the Joint Declaration are reflected in the draft Basic Law. The only articles of the draft which might contravene the Joint Declaration are those containing policy provisions, included at the insistence of the Hong Kong businessmen on the Basic Law Drafting Committee. These prescribe the economic policies of the future Hong Kong SAR Government (balanced budgets and low taxes) and thus undermine the principle of the high degree of autonomy that Hong Kong is to enjoy after 1997. There are other areas (eg over the power of interpretation of the Basic Law) where the drafting can be further improved. We will want to pursue these points in the light of reactions in Hong Kong.
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