CODE 18-77

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Reference..

JLG

5.

The paragraph on achievements of the JLG could be more positive. I suggest replacing the last sentence with the following:

"Further agreement was reached on the localisation of UK legislation applied to Hong Kong. Agreement was reached in principle on Hong Kong's continued participation after 1997 in the activities of the International Telecommunication Satellite Organisation and the International Maritime Satellite Organisation. Discussion continued on other issues including the transfer of defence responsibilities and Hong Kong's air services agreements. New items were introduced into the Joint Liaison Group agenda including arrangements for mutual legal assistance in criminal matters and for the protection and promotion of investment between Hong Kong and relevant countries."

6. In paragraph 7, second sentence, amend to read "... which Her Majesty's Government has encouraged."

7.

Paragraph 8 insert "in Hong Kong" after "held three meetings".

OTHER CONTACTS WITH CHINA

8. Paragraph 11: delete the penultimate sentence. Hong Kong should include and up date this in a new section on the Governor's visits.

NATIONALITY

9.

For China related reasons, I wonder whether we should state in paragraph 18 that we have "lobbied" the

international community. Could we say instead "have welcomed and encouraged initiatives by other countries to support Hong Kong

"?

CONSTITUTIONAL DEVELOPMENT

10.

I wonder whether this should contain some reference to convergence with the Basic Law (Members of Parliament will after all recall the Secretary of State's statement of 16 February). This might be achieved by adding to paragraph 27: "on which to base further development of Hong Kong's democratic system firstly in 1995 and thereafter in the framework laid down in Annex II to the Basic Law.

11.

Paragraph 59: I am concerned that it may look odd that Hong Kong has joined an OECD body. I have discussed with Mr Stone, who is going to suggest an appropriate epithet explaining the informal nature of the group.

MUKAMD

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