TNAG-1396-FCO40-1868-Future-of-Hong-Kong-Basic-Law-1985 — Page 33

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shall resume the exercise of sovereignty over Hong Kong with

effect from 1 July 1997. And in accordance with Article 31 of

the Constitution of the People's Republic of China, the People's

Republic of China shall, upon resumption of the exercise of sovereignty over Hong Kong, establish the Hong Kong Special

Administrative Region of the People's Republic of China and

enforce the Basic Law of the Hong Kong Special Administrative

Region which the National People's Congress of the People's

Republic of China shall enact and promulgate. The Basic Law

provides that after the establishment of the Hong Kong Special

Administrative Region the socialist system and socialist policies

shall not be practised in the Hong Kong Special Administrative

Region and that Hong Kong's previous capitalist system and life-

style shall remain unchanged for 50 years.

The Sino-British Joint Declaration on the question of Hong

Kong has won the warm support of the whole Chinese people including

Hong Kong compatriots, and the universal applause of the world.

Since the initialling of the Joint Declaration last year, Hong Kong has been maintaining its social stability and economic prosperity and the trend is most encouraging. Not long before, the Chinese and British Governments have completed the necessary amendments to their relevant legislations and exchanged

instruments. The Joint Declaration has now come into force and Hong Kong has entered the transition period. Hong Kong is going to return to the embrace of the motherland and become a special administrative region of the People's Republic of China in exactly 12 years' time from today. To welcome the advent of

this historic event, there is tremendous work for us to do. To formulate a Basic Law for the Hong Kong Special Administrative Region of the People's Republic of China is one of the tasks of vital significance.