RESTRICTED

Reference.

A7-159 il contracts+ franchifes

(f) Article 104: the oath of allegiance for principal officials could be changed either to one swearing allegiance to the PRC or to one including allegiance to the PRC;

(g) Articles 131 & 133: the Chinese could stipulate Taiwan as being part of the mainland of China or another part of the PRC but to/with which the HKSARG could not agree ASAS;

(h) Article 153: the Chinese could take a tougher line on international agreements to which the PRC is not a party;

(i) Chapter VIII: Interpretation: the Chinese might utilise their current powers of

Interpretation more stringently, or re-draft them to refelect this;

(j) Annex III: The Chinese could extend the list of National Laws to be applied to the SAR.

CODE 18-77

Sid Harkin

Dr SD Harkin

Hong Kong Department

WH 305

270 3287

4 June 1992

RESTRICTED

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