remains the cornerstone of our policy.

Basic Law

4.

The Basic Law, to come into force on 1 July 1997, will

be a constitutional charter for Hong Kong. It provides under the Chinese constitution for the establishment of the Hong

Kong Special Administrative Region (SAR) in accordance with

the provisions of the Joint Declaration. It was promulgated in April 1990 by the Chinese National People's Congress after

nearly 5 years' work by the Basic Law Drafting Committee composed of Hong Kong and mainland Chinese members.

Joint Liaison Group

5.

The main forum for implementation of the Joint Declaration is the Sino-British Joint Liaison Group (JLG).

The JLG meets at least three times a year in plenary session

(in London, Hong Kong and Peking). There are also frequent informal contacts between the British and Chinese permanent JLG offices in Hong Kong. The main function of the JLG is to

agree on the necessary legal and practical steps required to implement the Joint Declaration and to ensure a smooth

transfer of sovereignty in 1997. Much of its work is

technical in nature, concerning, for example, the continuation

of Hong Kong's international rights and obligations beyond

1997. The group made good progress in the early years, but

since 1989 it has been less productive. The British

Government would like to see the pace of work speeded up to

ensure a smooth transition for Hong Kong in 1997.

Court of Final Appeal

6. One recent agreement of the JLG is for a Court of Final

Appeal (CFA) to be established in Hong Kong to replace the

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