tems", the People's Republic of China will pursue the follow- ing basic policies regarding Macao:
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(1) In accordance with the provisions of Article 31 of the Constitution of the People's Republic of China, the Peo- ple's Republic of China will establish a Macao Special Administrative Region of the People's Republic of China upon resuming the exercise of sovereignty over Macao.
(2) The Macao Special Administrative Region will be directly under the authority of the Central People's Govern- ment of the People's Republic of China, and will enjoy a high degree of autonomy, except in foreign and defence af- fairs which are the responsibilities of the Central People's Government. The Macao Special Administrative Region will be vested with executive, legislative and independent judicial power, including that of final adjudication.
(3) Both the Government and the legislature of the Ma- cao Special Administrative Region will be composed of local inhabitants. The chief executive will 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 will be nominated by the chief execu- tive of the Macao Special Administrative Region for appoint- ment by the Central People's Government. Public servants (including police) of Chinese nationality and Portuguese and other foreign nationalities previously serving in Macao may remain in employment. Portuguese and other foreign nation- als may be appointed or employed to hold certain public posts in the Macao Special Administrative Region.
(4) The current social and economic systems in Macao will remain unchanged, and so will the life-style. The laws currently in force in Macao will remain basically unchanged. All rights and freedoms of the inhabitants and other per- sons in Macao, including those of the person, of speech, of
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