TNAG-1755-FCO40-2475-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 108

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8.

Formation of the first SAR Government

This is a matter which is understandably generating much interest in Hong Kong. We are listening carefully to all views. We recognise that it is right for the arrangements for the first SAR Government clearly to mark the change of sovereignty. But it is equally important that there should be continuity and a smooth transfer of government, so as to maintain confidence, both in Hong Kong and internationally.

9. Need for authentic English text of Basic Law?

There is considerable force in the argument for this. The Hong Kong Courts will be working on the basis of the common law system, and will need an official English text to be able to function properly. Article 9 of the draft Basic Law provides that 'the English language may also be used by the executive authorities, legislature and judicial organs of the Hong Kong SAR'. Recent statements by Chinese officials indicate that they are now fully seized of the importance of having an authentic English text available.

10. Provisions on the economy

We are well aware of its criticisms that some provisions in the draft (eg on a low tax policy, a balanced budget and open financial and monetary policies [Articles 105, 107 and 110]) are inconsistent with the Joint Declaration provisions stipulating that the handling of policies in these areas will fall within the autonomy of the Hong Kong SAR Government. There is a cogent argument that it is inappropriate to enshrine such provisions in the Basic Law. We feel sure that the Chinese authorities will take account of criticism of these articles. One possibility that has been suggested is that these provisions should be drafted as guidelines rather than as legally binding stipulations.

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