IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION
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During 1991, the Land Commission held three formal meetings. The two sides agreed to make available, during the 1991-2 financial year, a total of about 93.4 hectares of land, of which 5.9 hectares of residential land was released during the latter part of the year to meet the continuing strong demand in the property market.
Under the terms of paragraph 6 of Annex III to the Joint Declaration, premium income obtained by the Hong Kong Government from land transactions is, after deduction of the cost of land production, to be shared equally between the Hong Kong Government and the future Hong Kong Special Administrative Region Government. The average cost of land production is adjusted by the commission annually, and for the 1991-2 financial year the agreed figure was $3,330 per square metre. The Hong Kong Government's share of premium income is put into the Capital Works Reserve Fund for financing public works and land development. The future SAR Government's share is held in a trust fund, called the Hong Kong Special Administrative Region Government Land Fund, established by the Chinese side of the Land Commission. The fund is managed under the direction and advice of an investment committee, which includes among its members prominent bankers in Hong Kong, as well as a monetary expert from the Hong Kong Government. Over $25,010 million, representing the future SAR Government's share of premium income for the period May 27, 1985 to September 30, 1991, has been transferred to the fund.
The Basic Law
The Joint Declaration provides that the basic policies of the People's Republic of China regarding Hong Kong will be stipulated in a Basic Law of the Hong Kong Special Administrative Region (HKSAR) by the Chinese National People's Congress (NPC). After deliberation and consultation extending over five years, the Basic Law was promulgated in April 1990 by the NPC, together with the designs for the flag and emblem of the HKSAR. The Basic Law will be the constitutional document for the HKSAR. It ensures that the HKSAR will enjoy a high degree of autonomy, and guarantees the continuation of the existing systems and way of life.
The drafting of the Basic Law was undertaken by the Basic Law Drafting Committee (BLDC), appointed by the Chinese Government in 1985 and comprising both mainland and Hong Kong members. The Basic Law Consultative Committee (BLCC) of exclusive Hong Kong membership was tasked with canvassing views on the document in Hong Kong.
The first draft of the Basic Law was published in April 1988 for a five-month consultation exercise conducted by the BLCC. The second draft, reflecting many of the views expressed during the first consultation period, was published in February 1989. Consultation on the second draft ended in October 1989.
The five Special Groups of the BLDC met in December 1989 to draw up the final draft in the light of the outcome of the second consultation round. The final draft was endorsed by the BLDC in its last plenary session in February 1990 and submitted to the NPC for enactment in April 1990.
Adaptation of Laws
Article 8 of the Basic Law, which reflects paragraph 7 of Annex I to the Joint Declaration, provides that after the establishment of the HKSAR, the laws previously in force in Hong Kong shall be maintained, except for any that contravene the Basic Law, and subject to any amendment by the legislature of the HKSAR. The laws of Hong Kong therefore need