ANNEX I
ELABORATION BY THE GOVERNMENT of
THE PEOPLE'S REPUBLIC OF CHINA OF ITS BASIC POLICIES REGARDING MACAO
The Government of the People's Republic of China elab- orates the basic policies of the People's Republic of China regarding Macao as set out in paragraph 2 of the Joint Declara- tion of the Government of the People's Republic of China and the Government of the Republic of Portugal on the Question of Macao as follows:
the Macao Special Administrative Region the socialist system and socialist policies shall not be practised in the Macao Special Administrative Region and that the current social and eco- nomic systems and life-style in Macao shall remain unchanged for 50 years.
The Macao Special Administrative Region shall be directly under the authority of the Central People's Government of the People's Republic of China, and shall enjoy a high degree of autonomy, except in foreign and defence affairs which are the responsibilities of the Central People's Government. The Macao Special Administrative Region shall be vested with executive, legislative and independent judicial power, includ- ing that of final adjudication. The Central People's Govern- ment shall authorise the Macao Special Administrative Region to conduct on its own those external affairs specified in Sec- tion VIII of this Annex.
I
The Constitution of the People's Republic of China stipulates in Article 31 that "the state may establish special administra- tive regions when necessary. The systems to be instituted in special administrative regions shall be prescribed by laws enacted by the National People's Congress in the light of the specific conditions." In accordance with this Article, the People's Republic of China shall, upon the resumption of the exercise of sovereignty over Macao on 20 December 1999, establish the Macao Special Administrative Region of the People's Republic of China. The National People's Congress of the People's Republic of China shall enact and promulgate a Basic Law of the Macao Special Administrative Region of the People's Republic of China (hereinafter referred to as the Basic Law) in accordance with the Constitution of the People's Republic of China, stipulating that after the establishment of
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II
The executive power of the Macao Special Administrative Region shall be vested in the Government of the Macao Special Administrative Region. The Government of the Macao Special Administrative Region shall be composed of local inhabitants. The chief executive of the Macao Special Administrative Re- gion shall be appointed by the Central People's Government on the basis of the results of elections or consultations to be held in Macao. Officials holding principal posts (equivalent to Assistant-Secretaries, procurator-general and principal of- ficer of the police service) shall be nominated by the chief executive of the Macao Special Administrative Region for ap- pointment by the Central People's Government.
The executive authorities shall abide by the law and shall be accountable to the legislature.
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