TNAG-1333-FCO40-1765-Future-of-Hong-Kong-legislation-1985 — Page 55

CONFIDENTIAL

DSR 11C

would will/be

connection it will 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,

and 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

rease to from 1 July 1997 Her Majesty will have a sovereignty or

have

jurisdiction over any part of Hong Kong.

the latter lines is the preferred option.

A provision on

3.

The next question is whether the Bill should itself

provide for termination of UK sovereignty, or should enable

an Order in Council to be made for that, purpose. The issue

The Foreyu a common create secreting in rante of 5 November (paper c) was canvassed in

L

and Ministers have now decided

to opt for the former course. There is no constitutional

impediment to Parliament in terminating sovereignty in that

way, with effect only from 1 July 1997, and the Attorney

that

General prefers this option (paper

his minute of

11 October).

Privileges & Immunities

4.

The second prerequisite for ratification of the Joint

Declaration will be provision for privileges and immunities

Sias

for the members of the Joint Liaison Group. The Group

will be set up in accordance with Annex II to the Joint

/Declaration

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