TNAG-1332-FCO40-1762-Future-of-Hong-Kong-White-Paper-on-the-Joint-Declaration-1984 — Page 156

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PUBLIC SERVICE SYSTEM, AND FOR MEMBERS OF THE HONG KONG PUBLIC SERVICE TO CONTINUE TO SERVE UNDER THE GOVERNMENT OF THE SAR.

2. IT STATES THAT THOSE PUBLIC SERVANTS SERVING IN THE HONG KONG PUBLIC SERVICE WILL BE ABLE TO CONTINUE TO WORK FOR THE SAR

GOVERNMENT ON COMPARABLE TERMS OF SERVICE. THE SAR GOVERNMENT WILL CONTINUE TO PAY PENSIONS TO PUBLIC SERVANTS OF THE HONG KONG

PUBLIC SERVICE WHO HAVE RETIRED. FOREIGN NATIONALS WILL BE ABLE TO CONTINUE TO WORK IN THE PUBLIC SERVICE OF THE SAR, AS THEY DO IN THE HONG KONG PUBLIC SERVICE, BUT THEY WILL ONLY BE ABLE TO

RISE TO THE RANK OF DEPUTY SECRETARY.

3.

THIS SECTION ALSO PROVIDES FOR THE CONTINUATION OF HONG

KONG'S PUBLIC SERVICE SYSTEM UNDER THE SAR GOVERNMENT. APPOINTMENT AND PROMOTION WILL CONTINUE TO BE MADE ON MERIT BY AN

INDEPENDENT PUBLIC SERVICE COMMISSION. INDEPENDENT COMMISSIONS

WILL CONTINUE TO DEAL WITH THE PAY AND CONDITIONS OF SERVICE OF

PUBLIC SERVANTS AS THEY DO IN HONG KONG.

(D) FINANCIAL SYSTEM

1. THIS ANNEX NEEDS LITTLE FURTHER EXPLANATION. IT PROVIDES ESSENTIALLY FOR THE SAR TO HAVE COMPLETE AUTHORITY IN FINANCIAL AND BUDGETARY MATTERS. IT PROVIDES FOR BUDGETS AND FINAL

ACCOUNTS TO BE REPORTED TO THE CENTRAL PEOPLES GOVERNMENT FOR THE

RECORD: THE CHINESE GOVERNMENT HAVE MADE CLEAR THAT THIS DOES NOT

IMPLY ANY PROCESS OF APPROVAL IN PEKING. THIS PART OF THE ANNEX

ALSO PROVIDES FOR THE TAXATION AND REVENUE SYSTEM OF THE SAR TO BE MAINTAINED SEPARATELY FROM THE REST OF CHINA, AND FOR ALL REVENUES RAISED IN THE SAR TO BE USED THERE. THE LEGISLATURE WILL HAVE CONTROL OF ALL TAXATION AND PUBLIC EXPENDITURE.

PRESENT SYSTEM OF AUDITING WILL BE MAINTAINED.

(E) ECONOMIC SYSTEM AND EXTERNAL ECONOMIC RELATIONS

1.

THE

THIS SECTION OF THE ANNEX PROVIDES BOTH FOR THE AUTONOMY OF

THE SAR GOVERNMENT IN DETERMINING ITS TRADE AND ECONOMIC POLICY, AND FOR CONTINUITY OF HONG KONG'S FREE PORT STATUS AND FREE TRADE

POLICY. IT ALLOWS HONG KONG TO MAINTAIN ECONOMIC AND TRADE RELATIONS WITH ALL COUNTRIES AND REGIONS WITHOUT EXCEPTION.

2.

THE RIGHT TO PROPERTY INCLUDING THE INHERITANCE OF PROPERTY

IS PROTECTED BY THIS SECTION. JUST COMPENSATION WILL CONTINUE TO

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