ESTABLISHMENT OF THE HKSAR
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Joint Liaison Group
The functions and roles of the Joint Liaison Group (JLG) have been set out clearly in the JD. According to the JD, the JLG shall continue to exist and meet until January 1, 2000.
The JLG held 40 plenary meetings before the transition: 16 in Hong Kong, 13 in London and 11 in Beijing. Regular meetings between expert groups and an extensive range of less-formal contacts were also held. The JLG's first meeting after the Handover was held in Beijing on December 2 and 3, 1997.
Land Commission
The Sino-British Land Commission was established in 1985 in accordance with Annex III to the Joint Declaration and was dissolved on June 30, 1997. Its function is to conduct consultations on the implementation of the provisions of Annex III on land leases and other related matters.
The Land Commission held 35 formal meetings in Hong Kong before its dissolution on June 30, 1997. The Land Commission fulfilled the responsibilities conferred on it. In particular, it agreed to the disposal of almost 3 000 hectares of land after its establishment in 1985. It reached agreement on the legal documents to be used in land transactions falling within the provisions of Annex III to the Joint Declaration, on the legislation necessary to extend New Territories leases and on arrangements for special purpose leases. Notably, in 1994 agreement was reached on the granting of land for the new airport at Chek Lap Kok and the Airport Railway. With the establishment of the HKSAR, matters relating to land leases are, in accordance with the Basic Law, dealt with by the HKSAR Government.
Land Fund
After the establishment of the Land Fund in 1985, premium income obtained from land transactions concluded before July 1, 1997, was, after deduction of the cost of land production, shared equally between the then-Hong Kong Government and the HKSAR Government. The Hong Kong Government's share was credited to the Capital Works Reserve Fund to finance public works and land development.
The share allocated to the HKSAR Government was placed in a trust fund called the Hong Kong Special Administrative Region Government Land Fund, which was managed by an investment committee. Up to June 30, 1997, $150 billion had been transferred to the fund since its inception on May 27, 1985. On July 1, 1997, all the assets of the fund were handed over by its Trustees to the Financial Secretary and became part of the fiscal reserves of the HKSAR Government. Since then, the investment of the assets has been managed by the Hong Kong Monetary Authority under the Financial Secretary's direction with the assistance of an advisory committee.
The Office of the Commissioner of the Ministry of Foreign Affairs
The Basic Law provides that the Central People's Government (CPG) shall be responsible for foreign affairs relating to the HKSAR; that the Ministry of Foreign Affairs of the People's Republic of China shall establish an office in Hong Kong to deal with foreign affairs; and that the CPG authorises the HKSAR to conduct relevant external affairs on its own in accordance with the Basic Law.