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(Defensive) Court of Final Appeal. Independence of judiciary vital: the Prime Minister's visit to Peking helped us to get Chinese agreement to our setting up the Court before 1997 with this principle fully established. Unfortunately Hong Kong lawyers and politicians focused on a less important point: a maximum of one non-Hong Kong judge per session (out of five) rather than the two we had earlier hoped for. But except for the President of the Court the Hong Kong judges can be expatriate or local. An unhelpful over-reaction in Hong Kong: no prospect of getting a better deal from the Chinese. Hope in a few months LegCo will face choice between a Court on this basis now or leaving the

matter unresolved until 1997.

(Defensive) Nationality scheme proceeding smoothly: successfully targeted key people and has had stabilising effect. First tranche registrations should be completed in

1993.

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(Defensive) HM Overseas Civil Service (HMOCS)

compensation and pensions: Joint Declaration and Basic Law provide good assurances about continuity of civil service careers, pay and pensions. But we have a special obligation to HMOCS officers when sovereignty is transferred and are working hard to agree arrangements which meet our commitments, are fair to the officers concerned at lowest possible cost to the taxpayer, and which help Hong Kong to

continue to succeed after 1997.

(Defensive) Ivory. At the CITES meeting in Japan in March we shall oppose the resumption of trade in ivory and other elephant products. Difficult for Hong Kong (where large stocks remain) but our priority must be to sustain the reduction in poaching since the ban was introduced in 1989.

NC2ABO/3

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