I

CONFIDENTIAL

It seems to me that a similar system should be employed for the UK's relations with the SAR after 1997, the only material difference being that the agreements will have to

be between the UK and the Hong Kong SAR and cannot, The

therefore, be signed or enter into force until 1 July apcrements 1997. The entrustment/authorisation will obviously have to cel hot be

be given to the Government of the SAR by the CPG. Unfortunately, it will not be possible for the UK to enter with Hong Kong before 1997

sprical before hand into international

w.entry I to force alier 1997 become SAR und not exist бари

4

agreements

that can run on after 1997.

4.

The third (and

very

need to consider is when we

side.

important) question that we should raise this with the Chinese

While agreements on the various subjects between the UK and HKSAR will, as I have said, only be

hemp, hinad capable of entering into force after 1 July 1997 it will be it seems to me, that they go through the whole agreements essential, with UK.

process of preparation and consultation with the Chinese side well before 1 July 1997 and will therefore be ready for signature and entry into force on or shortly after that date.

In this way the preparation of the relevant agreements would be kept under our control and the normal pressures could be brought by us to achieve the results we need. We could not afford, for obvious reasons, to leave this exercise too late or until after 1 July 1997. Any leverage we might have before that date would certainly disappear after it. As it is, the Chinese might be tempted argue that they and the SARG will take care of these matters after 1997 in accordance with JD 34.77

134?

to

5.

I look forward to having your thoughts (and those of the people to whom I have copied this letter) on all this. We could then start putting together a strategy and timetable and thereafter preparing the necessary papers.

Чи

(D M Edwards)

Law Officer (International Law)

CC Miss Shelagh Brooks

Miss Jill Barrett

Mr Alan Paul UKREP JLG Mr Michael Suen

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