021/2
HKD 021/2.
RECEIVED IN REGISTRY
IN
09 MAR 1992
*OFFICER
EGISTRY
tion Taken
19
Good.
Mr
CA, HKD
Mr Morris, HKD
Miss Bliss,
Actimpl.
-
FROM:
DATE:
413
lempa - DA
Miss S Brooks Legal Counsellor
2 March 1992
pl cc Av Bradley, DPA. Hong Kong
In Pattison, Washington Miss Rogan. Peking
US POLICY TO HONG KONG: MCCONNELL BILL
{ti.
31ü.
1. Although the Bill is likely to attract Chinese objections, the Bill will not affect Hong Kong's legal status, except under US law. Title II touches on subjects which are of sensitivity to the Chinese though Titles I and III contain equally sensitive subjects. I agree with Mr Cox that the Chinese may well regard Title II paragraphs (c), (d) and (e) as infringing their sovereignty, but I do not think PRC objections would be well founded.
2.
Paragraph (c) makes it clear that the PRC's resumption of the exercise of sovereignty over Hong Kong shall not affect United States' obligations under law to Hong Kong. This is, I think, a welcome statement in so far as the US is prepared to accept that international obligations of the US which at present apply to Hong Kong shall continue to apply after 1997. Whether the PRC is willing for these to continue to apply after 1997 is a matter for discussion between the British and Chinese sides before 1997. Clearly it is open to the PRC to take the position that such obligations should not apply to Hong Kong after 1997. Incidentally, I think that obligations in this context could be interpreted as including, for example, contractual obligations of the US Government under private international law, as well as obligations arising under treaties to which the USA is a party and which apply to Hong Kong.
3. Paragraph (d). I think similar points to those referred to in the preceding paragraph apply.
4. Paragraph (e). I do not really think that paragraph (e) ought be seen by the Chinese as violating their view of their succession arrangements in 1997. Paragraph (e) is merely providing that resumption of sovereignty by the PRC over Hong Kong does not affect rights in respect of property owned or held in the United States before 1 July 1997 or thereafter, whether owned or held by the Hong Kong Government or by Hong Kong residents.
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