III. MAJOR CONTENTS OF THE SINO-BRITISH JOINT DECLARATION

(1) Resumption of the exercise of sovereignty

The Chinese Government will resume the exercise of sovereignty over Hong Kong with effect from

from 1 July

1997.

(2) Establishment of a Special Administrative Region

(3)

The PRC has decided to establish, in accordance with the provisions of Article 31 of the Constitution of the PRC, a HKSAR upon resuming the exercise sovereignty in 1997.

A high degree of autonomy

of

The HKSAR will be directly under the authority of the Central People's Government of the PRC. It will enjoy a high degree of autonomy,

of autonomy, except in

except in foreign and defence affairs which are the responsibilities of the Central People's Government.

(4) Internal administration

The HKSAR will be

be vested with executive, legislative and independent judicial power, including that of final adjudication. The laws currently in force in Hong Kong will remain basically unchanged.

(5) The Administration of the HKSAR

The Government of the HKSAR will be composed of local inhabitants.

(a) The Chief Executive will be appointed by the Central People's Government on the basis of the results of local elections or consultations.

(b)

(c)

Chief

Principal officials will be nominated by the Executive of the HKSAR for appointment by the Central People's Government.

Chinese and foreign nationals previously working in the public and police services in the government departments of Hong Kong may remain in employment.

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