CONFIDENTIAL

XCX(93)28

Implementation

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The exact timing and mechanism for discontinuing or replacing the existing Commonwealth links listed at Annexes A to C will be decided by the relevant policy branches in consultation with the Secretary for Constitutional Affairs. It is envisaged that the majority of formal links will be discontinued in 1997, although the relevant Commonwealth organisations will have to be informed earlier. The Foreign and Commonwealth Office will also be consulted as necessary.

CHINA DIMENSION

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We are obliged to consult the Chinese side on changes in mutual legal assistance schemes which involve international rights and obligations. We are also required to inform the Chinese side of proposed adaptations of Hong Kong laws, including proposals for the removal of statutory references to the Commonwealth. Whether such proposals would need to be the subject of detailed discussion would depend on their precise nature. As for non-statutory arrangements in paragraph 7(a) to (c) above, we consider that it is not necessary, nor tactically desirable, to consult the Chinese side because

(a)

(b)

(c)

they should have no difficulty with our severing formal governmental links with the Commonwealth in 1997 or before;

any continued links after 1997 with the Commonwealth as proposed in paragraph 7(a)-(c) would be informal and non-governmental in nature and would not create any obligations or commitments for the future HKSARG. The maintenance of these kinds of links is specifically foreseen in the Basic Law (BL 149); and consulting the Chinese side on the maintenance of any remaining informal links with the Commonwealth might encourage them to adopt a negative attitude, thus putting our objective of maintaining those links

at risk.

FINANCIAL AND STAFFING IMPLICATIONS

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The Commonwealth organisations/activities which are at present receiving Hong Kong Government subsidies and which we propose to bring to an end upon the severance of formal links in 1997 or before are -

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