機密

CONFIDENTIAL ##

The

6

rigidities imposed on

the SAR's fiscal

policies restrict the autonomy of the SAR in

of its disposing

financial resources and drawing up its budgets, and therefore does not comply with JD 79, which reads :-

We

"The HK SAR shall deal on its own with financial matters, including disposing of its financial resources and drawing up its budgets and its final accounts."

concerned that becuase of the

be might

liable

also are

the SARG article litigation in courts.

to

We put these points and an alternative text the note of 7/9/89,

to

the Chinese

in

Fifoot/Shao letter of 9/11/89 and S of S's

Action is the Chinese to

letter

of

approach concerns.

Public Line : Note

6/12/89.

in hand to reiterate our

of the article is and acceptable,

[this will

be

that Chinese text capable of more flexible,

that Hope interpretation. reflected in final English text]. [the Chinese will look at this article again).

Article 157

Issue

: In Feb 1989 text, para.3 of Art. 157 reads :-

#

*

of

on

However,

if

the

the

of courts Region, in adjudicating cases before them, need to interprete the provisions this Law concernign affairs which are the responsibility of the CPG, or the

between relationship

the Central Authorities and the Region, and if such interpretation will affect the judgments the cases, the courts of the Region

before making their final · which are not appealable, seek of the relevant from the Standing Committee of through the Court of Final the Region. When the Standing makes an interpretation of the provisions concerned, the courts of the

those in applying

provisions,

shall,

judgments

an interpretation provision

the

NPC

Appeal of Committee

Region, shall follow the interpretation of the Standing Committee. However, judgments

previously

affected."

rendered

shall

not

CONFIDENTIAL #2

be

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