*TRANSFERRED FROM HIS 406

CONFIDENTIAL

406/18*

©

Miss S Brooks Legal Advisers

CHINESE MFA OFFICE IN HONG KONG

1.

2

HKC406/4

29

You will see from folios 71 and 80 in the attached file that a disagreement has arisen over the interpretation of "directly under the authority of the CPG" in JD7. Mr Cox argues agrees that this simply means that the HKSARG's lines of

communications are directly with Peking, and that it is not subordinate to a province. In this sense JD7 is an enhancement of Hong Kong's autonomy.

2.

Mr Galsworthy has rejected this view and appears to argue that JD7 means that the CPG can request a free grant of land in Hong Kong and that the SARG must then concede it. This would, to us, appear to be a considerable infusion on the SAR'S autonomy, but I should be grateful for your advice on this.

3.

I would also be grateful for advice from Mr Wye on the posiber. of these municipalities directly under the CPG, eg Tianjin and Shanghai.

S Riordan

Hong Kong Department

WH 305

270 2655

Ели

Raul

14 August 1991

CC:

RIDAMZ TG

Mr Wye RAD OAB 2/124

CONFIDENTIAL

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