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Background Note

CONFIDENTIAL

Redacted

under FOI exemption 27(1)

CHINESE REACTION TO THE SCHEME

1.

The text of the official Chinese statement is attached.

CONSISTENCY WITH THE JOINT DECLARATION

2.

3.

Article 4 of the Joint Declaration states 1

"The Government of the United Kingdon and the Government of the

People's Republic of China declare that, during the transitional period between the date of the entry into force of this Joint

Declaration and 30 June 1997, the Government of the finited

Kingdom will be responsible for the administration of Hong Kong with the object of maintaining and preserving its economie prosperity and social stability: and that the Government of the People's Republic of China will give its cooperation in this

connection.

CONFIDENT I AL

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