TNAG-1388-FCO40-1859-Future-of-Hong-Kong-Sino-British-Joint-Declaration-1985 — Page 98

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5. IF ASKED WHY RATIFICATION COULD NOT HAVE TAKEN PLACE EARLIER, GIVEN THAT THE HONG KONG ACT RECEIVED THE ROYAL ASSENT ON 4 APRIL AND THAT THE JOINT DECLARATION WAS APPROVED BY THE NATIONAL PEOPLE'S CONGRESS OF THE PRC IN APRIL, YOU SHOULD SAY THAT IT WAS ALSO NECESSARY FOR CERTAIN LEGISLATION TO BE ENACTED IN HONG KONG BEFORE RATIFICATION COULD TAKE PLACE. THE LAST PIECE OF SUCH LEGISLATION WAS PASSED ON 15 MAY WHEN THE LEGISLATIVE COUNCIL APPROVED A RESOLUTION FOR THE RESTRUCTURING OF THE CAPITAL WORKS RESERVE FUND. THE RESTRUCTURING WAS NECESSARY TO GIVE EFFECT TO THE NEW ACCOUNTING ARRANGEMENTS WHICH THE HONG KONG GOVERNMENT HAS TO INTRODUCE IN ORDER TO IMPLEMENT THE PROVISIONS OF PARA 6 OF ANNEX 111 TO THE JOINT DECLARATION RELATING TO THE SHARING OF PREMIUM INCOME FROM LAND TRANSACTIONS.

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