TNAG-1345-FCO40-1775-Future-of-Hong-Kong-Joint-Liaison-Group-1984 — Page 8

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Foreign and Commonwealth Office

London SW1A 2AH

Telephone 01233 4381

RJT McLaren CMG

Political Adviser HONG KONG

Your reference

Our reference

Date

21 December 1984

&

Dear Robin,

JOINT LIAISON GROUP

1.

When the Governor was in London at the beginning of December he discussed with us the first draft of a paper which we had written on our approach to the Joint Liaison Group. I now enclose a redrafted version of that paper, which also takes into account discussion with David Wilson. He asked me to send it to you and seek your comments.

2. As you will see, the paper is a very preliminary approach to the problems raised by our participation in the Joint Liaison Group, and will naturally need to be supplemented by more detailed studies. There are a number of gaps which it would be helpful if you could fill. We look forward to receiving your comments and contributions, preferably in the form of drafting language. Our aim is to submit an agreed paper

an agreed paper to Ministers in the New Year.

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FUTURE OF HONG KONG: SINO-BRITISH JOINT LIAISON GROUP

INTRODUCTION

1. The purpose of this paper is to consider:

(i) what our objectives should be, and what will be the likely

Chinese objectives, in relation to the work of the Joint

Liaison Group;

(ii) what pattern of participation and work would best assist us

achieve our objectives.

2.

Annex II to the Joint Declaration sets our the agreed shape and

functions of the Sino-British Joint Liaison Group. The relevant

provisions are the following:

(a) It will be established when the agreement enters into force

before 30 June 1985. It will meet in Peking, London and Hong

Kong, at least once in each location each year. Until 1 July

1988 it will be entirely peripatetic: thereafter it will have

its principal base in Hong Kong.

(b)

(c)

The Joint Liaison Group will have on each side a senior

representative of Ambassadorial rank and four other members of

the group.

Each side may send up to 20 supporting staff.

It

set up specialist sub-groups by agreement. Experts other

than the members of the Joint Liaison Group can attend meetings

of the Joint Liaison Group and sub-groups.

Each side may

determine the composition of its own delegation. Proceedings

will remain confidential. Working procedures will be decided

by the two sides.

The functions of the Joint Liaison Group are:

(i) to conduct consultations on the implementation of the

Joint Declaration.

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(ii) to discuss matters relating to the smooth transfer of

government in 1997.

(d)

(iii) to exchange information and conduct consultations

subjects as may be agreed by the two sides.

in the first half of the period up to 1 July 1997 matters for

consideration will include:

(e)

(i) action to be taken by the two Governments to enable the

Hong Kong Special Administrative Region to maintain its

economic relations as a separate customs territory, and

in particular to ensure the maintenance of Hong Kong's

participation in the General Agreement on Tariffs and

Trade, the Multifibre Arrangement and other international

arrangements; and

(ii) action to be taken by the two Governments to ensure the

continued application of international rights and

obligations affecting Hong Kong.

in the second half of the period up to 1 July 1997 matters for

consideration will include:

(i) procedures to be adopted for the smooth transition in

1997;

(ii) action to assist the Hong Kong Special Administrative

Region to maintain and develop economic and cultural

relations and conclude agreements on these matters with

states, regions and relevant international organisations.

BRITISH AIMS

3.

A basic question is what should be our fundamental approach to the Group. In the negotiations we adopted a defensive posture, designed to limit the field of activity and influence of the Group.

The initial attitude in Hong Kong to the Group was one of extreme

suspicion. However the public perception of the Group has already

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