IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

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(c) the HKSAR will be vested with executive, legislative and independent judicial

power including that of final adjudication;

(d) the Government of the HKSAR will be composed of local inhabitants;

(e) the current social and economic system in Hong Kong will remain unchanged,

and so will the life-style. Rights and freedoms will be protected by law;

(f) the HKSAR will retain the status of a free port and a separate customs

territory;

(g) the HKSAR will retain the status of an international financial centre;

(h) the HKSAR will have independent finances;

(i) the HKSAR may establish mutually beneficial economic relations with the

United Kingdom and other countries;

(j) using the name "Hong Kong, China”, the HKSAR may on its own develop

economic and cultural relations;

(k) the maintenance of public order in the Hong Kong Special Administrative

Region will be the responsibility of the Hong Kong SAR; and

(1) these policies will remain unchanged for 50 years.

The Joint Declaration also provides that, until June 30, 1997, the Government of the United Kingdom will be responsible for the administration of Hong Kong with the object of maintaining and preserving its economic prosperity and social stability; and the Government of the People's Republic of China will give its co-operation in this connection. It also provides that the Governments of the United Kingdom and the People's Republic of China agree to implement the declaration and its annexes.

The Sino-British Joint Liaison Group

The Joint Declaration foresaw that, in the years between its signing and the establishment of the Special Administrative Region, much would need to be done to prepare Hong Kong for its new status. To this end it provided for the establishment of the JLG and a Sino-British Land Commission.

Annex II of the Joint Declaration sets out the functions of the JLG as:

sets

(a) to conduct consultations on the implementation of the Joint Declaration; (b) to discuss matters relating to the smooth transfer of government in 1997; and (c) to exchange information and conduct consultations on such subjects as may be

agreed by the two sides.

The JLG is an organ of liaison not power. It must meet in Hong Kong, London and Beijing, at least once a year at each venue. The JLG has held 34 plenary meetings since 1985: 13 in Hong Kong, 11 in London and 10 in Beijing. It has also established expert groups which have met many times.

Agreements Reached So Far

The Joint Declaration set out that, in the first half of the period between the establishment of the JLG and July 1, 1997, the JLG should consider:

(a) action to be taken by the two governments to enable the HKSAR to maintain its economic relations as a separate customs territory, and in particular to

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