TNAG-1333-FCO40-1765-Future-of-Hong-Kong-legislation-1985 — Page 25

CONFIDENTIAL

HKCK

040/53.

RECEIVED IN REGISTRY

1 5 NOV 1984

DESK OFFICER

INDEX

PA

HONG KONG BILL

INSTRUCTIONS TO PARLIAMENTARY COUNSEL

1. A Bill is required to enable the United Kingdom to ratify

before 30 June 1985 the Joint Declaration (paper A) of the

Government of the UK and the Government of the People's Republic of China on the question of Hong Kong, and for other purposes connected with the Joint Declaration. The Cabinet Committee on legislation

and the Sub-Committee on Hong Kong of the Cabinet Defence and

Oversea Policy Committee gave approval on 9 November, in response to

the Foreign & Commonwealth Secretary's minute to the Prime Minister

of 5 November (paper B).

Sovereignty

2. The main prerequisite for ratification of the Joint Declaration

will be a provision in the Bill dealing with sovereignty. In the view of HMG the UK has sovereignty over the ceded parts of Hong Kong and an international lease of the New Territories, all being

collectively known as "Hong Kong" (see paragraph 3 of the White Paper, paper A). China claims to have sovereignty already over the whole of Hong Kong. The Joint Declaration does not attempt to solve

this dispute, but paragraphs 1 and 2 make it clear that the United

Kingdom will have to recognise China's sovereignty with effect from 1 July 1997. For this purpose the United Kingdom will have to divest itself of sovereignty over the ceded areas. In this connection it would be possible for the Bill to deal only with the

ceded territories and for the UK's interest in the New Territories

to terminate by effluxion of time. However to do so could be

misconstrued in Peking and elsewhere, particularly since the nature

of the UK's interest under the "lease" is not without controversy.

It may therefore be preferable for the Bill to avoid drawing any distinction between the constituent parts of Hong Kong. It could for example provide that with effect from 1 July 1997 Her Majesty will cease to have sovereignty or jurisdiction over any part of Hong Kong. A provision on the latter lines is the preferred option.

1 -