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Basic Law, we have assumed that, firstly, the common law rule in section 66 of Cap. 1 would be retained and secondly, the PRC Government agencies would be treated as separate entitiies distinct from the HKSAR Government."

10. I hope the above is of assistance. Our Legal Advisers are working on the amendment you have requested to Hong Kong (Legislative Powers) Order 1986, and we will be in contact on this subject shortly.

Yours ever,

Worts Wolgen

W A Wyver

Hong Kong Department

cc: Miss Shelagh Brooks, Legal Advisers

Miss Jill Barrett, Legal Advisers

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CONFIDENTIAL

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