IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION
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Defence and Public Order
The two sides continued discussions on the implementation of the Joint Declaration in respect of defence and the maintenance of public order. These discussions included the practical arrangements for the transfer of defence responsibilities in 1997.
Court of Final Appeal
The Joint Declaration provides for the establishment of a court of final appeal in the Hong Kong Special Administrative Region (HKSAR). During 1989, the two sides continued their discussions on the establishment of a court of this nature in Hong Kong before 1997.
Localisation of Laws
A large number of United Kingdom enactments currently apply to Hong Kong. These will cease to have legal effect in Hong Kong after 1997. It will, therefore, be necessary to 'localise' them before 1997, that is, replace them by legislation enacted in Hong Kong which will survive 1997. At the eighth meeting of the JLG held in November 1987, the two sides agreed on the general principles for consultation on the localisation of United Kingdom enactments, since when considerable progress has been made. The first piece of localised legislation, the Supreme Court (Amendment) Ordinance dealing with Admiralty jurisdiction in respect of civil proceedings, was enacted in February 1989. Four sets of Merchant Shipping (Safety) Regulations were localised in May 1989 and two bills relating to merchant shipping were introduced into the Legislative Council in June 1989.
Air Service Agreements
In 1988, Hong Kong signed new Air Service Agreements (ASA), separate from those of the United Kingdom, with Switzerland and with Canada. An ASA with Brunei was signed and entered into force on January 9, 1989, and negotiations with a number of other aviation partners are at an advanced stage.
Sub-group on International Rights and Obligations
The Sub-group on International Rights and Obligations, set up by the Joint Liaison Group, was formally established in July 1986 to examine and discuss matters relating to the continued application of international rights and obligations affecting Hong Kong and to report its conclusions to the JLG. The sub-group, which is based in Hong Kong, consists of three experts on each side, supplemented as necessary by other experts and supporting staff.
The considerable number of treaties and international obligations relevant to Hong Kong which the sub-group will have to examine individually indicates that its work will take a number of years to complete. So far the sub-group has held eight meetings and has made good progress. In 1989, expert exchanges in the sub-group led to agreement between the two sides at the JLG on Hong Kong's continued participation after 1997 in the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the International Development Association (IDA). It was agreed that after 1997, Hong Kong would continue its present participation in these organisations, and that the IBRD, the IFC and the IDA could conduct operations in Hong Kong or in Hong Kong dollars in accordance with their relevant articles of agreement when the need arose. The JLG has now reached agreement on Hong Kong's continued participation in a total of 24 international organisations.