TNAG-1258-FCO40-1591-Third-countries-and-the-future-of-Hong-Kong-1984 — Page 9

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ANNEX A

EXTRACT FROM STATEMENT MADE BY VICE MINISTER YAO GUANG

IN THE TALKS ON 14 NOVEMBER

China's

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I have pleasure in further elaborating and explaining the Chinese Government's basic policies for the settlement of the Hong Kong question as follows:

1)

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The Hong Kong area, (including Hong Kong island, Kowloon and the "New Territories"), has been part of China's sacred territory since ancient times. The Government of the People's Republic of China does not recognise the three unequal treaties Concerning the Hong Kong area which Britain imposed on China in the 19th centuryJand has always maintained that the Hong Kong question is an issue left over from the past which should be settled at an opportune time. China will resume the exercise of its sovereignty over Hong Kong from 1 July 1997 and the time until then is the transition period for the settlement of the Hong Kong

question]

After China resumes the exercise of its sovereignty, the Hong Kong Special Administrative Region (SAR) directly under the authority of the Central People's Government will be established in accordance with Article 31 of the Constitution of the People's Republic of China. The Hong Kong SAR will enjoy a high degree of autonomy.

The Hong Kong SAR will be vested with the power of legislation and independent judicial power including that of final judgement. The laws, decrees and regulations currently in force will remain basically unchanged.

The government of the Hong Kong SAR will be composed of local inhabitants. The principal officials will be appointed by the Central People's Government on the basis of the results of elections or consultations held locally. Local British and other foreign nationals may be employed to serve as advisers in organs at various levels in the Hong Kong SART

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