Q1. Why will contracts awarded before 1997 continue to be valid after that date?
A1. It is normal international practice that following any change in the government of a particular area, the private law obligations undertaken by the previous government are inherited by the administration which has replaced it. This practice was followed in the Joint Declaration, which provided for the laws previously in force in Hong Kong, including the common law, to be maintained, provided that they do not contravene the Basic Law. The continuation in force of the common law carries with it the continuation of contractual rights and obligations which derive from it. This was made explicit in Article 160 of the Basic Law which provides that ''documents, certificates, contracts and rights and obligations valid under the laws previously forced in Hong Kong shall continue to be valid and be recognised and protected by the Hong Kong SAR, provided that they do not contravene this Law''
Q2.
Who interprets whether a contract is consistent with the Basic Law?
A2.
relevant provisions.
Article 158 of the Basic Law sets out the It is hard to imagine that any contract or
franchise in force in Hong Kong before 1 July 1997 would
contravene the Basic Law.
Q3. Is HKG obliged to consult the Chinese side on franchises extending beyond 1997?
A3.
An understanding was reached at JLG XVII, which was reflected in the Communique, that the two sides had agreed a mechanism for keeping the Chinese side informed of any franchises to be awarded or renewed if the validity of the franchise concerned extends beyond 1997.
Since this understanding was reached the British side has provided the Chinese side with full background details of franchises which will extend beyond 1997. The British side has consulted the Chinese side on a number of these franchises, including China Light and Power Co's Scheme of Control and the proposed establishment of an Electronic Date Interchange Service. Discussions on other franchises are continuing. These consultations have proceeded smoothly.
A 4.
Which franchises have the Chinese side been consulted on?
A4.
The JLG has discussed the renewal of China Light and Power's Scheme of Control Agreement and the franchise with Tradelink to establish an Electronic Date Interchange Service. We have also initiated consultation on other possible future franchises. Examples are the proposed subscription television licence and Hong Kong Electric's new Scheme of Control.