'to
at the end of the second sentence the words 'and multilateral ones at that.'. Finally I would expand the last part of the final sentence in paragraph 7 to read which the PRC is or becomes a party or is not a party but which are implemented in Hong Kong'.
Draft paragraph 8. In the second half of the sentence I suggest replacing 'making arrangements' with 'negotiating draft agreements'.
1.
8. Draft paragraph 9. I have mentioned a fourth possibility to Dr Harkin. This reflects a dicussion I have had with colleagues. If an IPPA between the UK and the HKSARG is not a possibility, sufficient protection would probably be given to UK investments in the HKSARG if the Hong Kong Government were to enact before 1997 legislation which would protect foreign (including UK) investments after 1997 from expropriation and measures equivalent to expropriation. It appears that legislation in parallel would not be required in the UK. At first sight it would seem rather difficult for the Chinese to argue against such legislation, and to justify such a line publicly.
9.
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Draft paragraph 9(a). In the first sentence the words 'Hong Kong' should become the 'Hong Kong SARG'. At the end of the first sentence I suggest we give the UK/PRC IPPA as an example because the second sentence goes on to discuss the particular case of that IPPA. I also suggest expanding the second sentence to read 'but, as the PRC deliberately sought an understanding that Hong Kong would be excluded from the scope of the IPPA ... In the third sentence of this paragraph I suggest adding the words 'in content' after 'suitable' and in the fourth sentence I suggest you add the word 'also' between 'It' and 'goes'. This would bring out what I consider to be two separate and unrelated points. One is the point that bilateral agreements of the PRC are unlikely to be suitable in content to be applied to the SARG. There is also the policy point that extending existing UK bilateral agreements with the PRC goes against all that we have been doing to set up agreements between Hong Kong and third countries which will run on after 1997.
Draft paragraph 9(b). I suggest adding a new third
10.
sentence:
'On the other hand, identical MOUS concluded with the SARG after 1997 could continue without the need for authorisations except in the case of air services (JD
121)'.
AE7ACP