10.

Localised legislation along the lines described above

would not have extraterritorial effect. Nor, with one exception, would it confer on an authority in Hong Kong any powers at present conferred on an authority in the United Kingdom, since most of the

powers it is proposed to confer on the Governor are already

conferred on him by the 1985 Order. The exception relates to the

power to certify which states are Contracting Parties to the Code,

which is at present given to Her Majesty in Council. The British

side proposes that this power should be given to the Governor, as in

the case of the localisation of the law relating to the limitation

of shipowners' liability.

Future adaptation

11.

Nearer to 1997 certain amendments to the Ordinance will be

required to ensure it does not contravene the Basic Law. One

example is the references to the Secretary of State as in para. 9

above. The British side will in due course consult the Chinese side

on any such amendments in accordance with the agreed principles for

consultation on adaptation of laws.

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