SECRET
Effect of Relinquishment of Sovereignty
3. On a cession of territory, the existing corpus of
could, if the new sovereign agreed,
law/normally remains in forcè subject to the powers of
competent authorities to amend or replace particular laws
thereafter as occasion may require.
Requirements of the United Kingdom
4.
The United Kingdom will need to ensure that the existing corpus of law in Hong Kong remains in being in this way](subject to any adaptations rendered necessary by the change of status) and that Hong Kong will continue
to have its own properly-constituted legislature.
5. The UK will also wish to preserve legislative
authority exercisable by Act of Parliament or Order in
Council to the extent that it has powers and jurisdiction
under a 'management contract'.
6.
This need not however exclude constitutional
arrangements for Hong Kong under which the local legislature
has a substantial degree of autonomy, subject to any necessary safeguards, limitations and exceptions.
Unacceptable changes
7.
In the exercise of its powers to administer the
territory, the UK and the Hong Kong Government must be
free from interference from PRC both in the executive
and the legislative fields. It would not therefore be
acceptable for the PRC to assume legislative powers in respect of Hong Kong nor to exercise any control over the
/proceedings
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