territory has a myriad of international relations, governing a wide range

of commercial and other matters. It is mainly important, therefore, that

in the process of the transfer which will be occurring in 1997 that there

should be co-operation within the spirit both of Article 4 and Annex II

5(b) in order to ensure that there is not a hiatus so that the economic,

commercial and rest of the life of Hong Kong can continue after that date.

From that point of view I think the Foreign Office have a valid point and

it will become important that this co-operation should occur.

104.

(Mr Keller)

105.

Do you agree with that, Mr Keller?

Yes.

And Dr Slinn?

(Dr Slinn) Yes, indeed. The obligation to carry out treaty

undertakings if one has made a treaty is an obligation to do so in good

faith. That does mean that co-operation in a sense has a real meaning.

What about the Chinese counter claim? They kept saying to

106.

the Committee that "everyone knew" that functional constituencies were a

certain kind, and indeed the British had invented them, and had already put

an agreement or a White Paper to this Parliament, so that changing the

membership or the style of membership of those committees was in fact

breaking the spirit of the treaty.

(Mr Duffy) With respect to the Chinese arguments, the Joint

Declaration did not require everything to remain unchanged between 1984 and

1997. It quite clearly indicated that at the point of the hand-over there

were going to be changes over matters that had been agreed in the treaty

which were important in order to give effect to the continuation of life

style of Hong Kong after 1997. That specifically includes changes to the

legislature, and Annex I, point 1 specifically indicates that the LegCo

will be elected. From that point of view it is in a sense incumbent on the

British Government in the transitional period to seek to bring that about

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