TNAG-1397-FCO40-1869-Future-of-Hong-Kong-Basic-Law-1985 — Page 2

In this note the basic policies for the preservation

of stability and prosperity are first set down.

These policies are consistent with the declaration

of the Government of the People's Republic of

China recorded in paragraph 3 and Annex 1 of the

Joint Declaration.

2. In order to preserve these basic policies, a

constitution is proposed which:-

(i) recognises that wholesale and sudden changes in the way decision makers in government are found risks losing stability and prosperity: it is therefore built on present systems;

(11) provides for a high degree of autonomy;

(iii) provides

provides a means for exercising powers relating to foreign and defence affairs by the

Central

People's

Government; and

(iv) balances the

interests of

the various components of Hong

Kong society.