TNAG-1760-FCO40-2513-Future-of-Hong-Kong-11th-meeting-of-the-Sino-British-Joint-L-1988 — Page 12

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THAT MORE INTERNAL DISCUSSION WILL BE NEEDED BEFORE THEY CAN COME TO A VIEW WHICH RECONCILES THEIR MILITARY REQUIREMENTS AND THE WIDER ECONOMIC AND POLITICAL CONSIDERATIONS (OF WHICH THEY ARE FULLY SEIZED). THIS IMPORTANT AND COMPLEX SUBJECT WILL CLEARLY FEATURE ON THE JLG'S AGENDA FOR SOME TIME. FURTHER EXPERT TALKS WILL BE HELD IN THE NEW YEAR.

THERE WAS MINIMAL DISCUSSION ON THIS OCCASION OF THE SURRENDER OF FUGITIVE OFFENDERS (IE EXTRADITION).

5.

FORMAL AGREEMENT WAS GIVEN TO THE MATTERS AGREED UPON IN PRINCIPLE AT JLG X (SEE PARA 3 OF OUR TELNO 1580). EXPERTS WILL NEXT MEET IN JANUARY TO DISCUSS THE DETAILS NECESSARY FOR THE IMPLEMENTATIONS OF THE AGREEMENT, WHICH FORMS THE BASIS FOR HONG KONG TO ESTABLISH ITS OWN NETWORK OF EXTRADITION AGREEMENTS. WE HOPE THAT SOON THEREAFTER HONG KONG WILL BE ABLE TO BEGIN NEGOTIATING THE FIRST OF THOSE AGREEMENTS.

6. THE JLG SUBGROUP ON INTERNATIONAL RIGHTS AND OBLIGATIONS DISCUSSED HONG KONG'S FUTURE PARTICIPATION IN THE LEADING INTERNATIONAL FINANCIAL INSTITUTIONS IN NOVEMBER. AFTER 1997 HONG KONG WILL CONTINUE TO HAVE ITS OWN CURRENCY AND TO CONDUCT ITS OWN ECONOMIC AND FINANCIAL POLICIES. IT IS IMPORTANT THAT HONG KONG SHOULD BE ABLE TO CONTINUE TO PARTICIPATE IN THE ORGANISATIONS' MEETINGS AND ACTIVITIES IN THE SAME WAY AS IT DOES TODAY: FOR EXAMPLE THE FINANCIAL SECRETARY ALWAYS ATTENDS ANNUAL MEETINGS OF THE BOARD OF DIRECTORS OF THE IMF AND IBRD. BROAD AGREEMENT ON THIS HAS NOW BEEN REACHED, ALTHOUGH SOME DETAILED TECHNICAL POINTS REQUIRE FURTHER CONSIDERATION IN THE SUBGROUP.

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FOR THE BACKGROUND ON LOCALISATION OF LEGISLATION, SEE PARA 4 OF OUR TELNO 1580. FOLLOWING AGREEMENT AT JLG X, THE FIRST PIECE OF LOCALISED LEGISLATION WILL BE INTRODUCED INTO HONG KONG'S LEGISLATIVE COUNCIL IN THE NEXT FEW DAYS. THAT IS THE SUPREME COURT CAMENDMENT) BILL, WHICH WILL LOCALISE ADMIRALTY JURISDICTION (THIS COVERS EG CASES INVOLVING CLAIMS ARISING FROM COLLISIONS AT SEA). WE HAVE HANDED OVER PAPERS CONCERNING THE LOCALISATION OF MERCHANT SHIPPING LEGISLATION. OUR PROPOSALS APPEAR GENERALLY ACCEPTABLE TO THE CHINESE SIDE, BUT EXPERT TALKS WILL BE NECESSARY TO DISCUSS SOME POINTS OF DETAIL. WE HAVE ALSO RECENTLY HANDED OVER PAPERS ON THE LOCALISATION OF CIVIL AVIATION LEGISLATION, WHICH THE CHINESE SIDE ARE NOW STUDYING.

8.

ON AIR SERVICES AGREEMENTS, WE NOW SEEM TO HAVE AGREED UPON A BASIS ENABLING WORK ON QUOTE ASAS OUTSIDE THE SEPARATION PROCESS UNQUOTE (IE WITH COUNTRIES THAT DO NOT ALREADY HAVE ASAS WITH THE UK WHICH INVOLVE ROUTES TO OR FROM HONG KONG). WE HOPE THAT HONG KONG WILL BE ABLE TO SIGN A FURTHER TWO ASAS EARLY IN THE NEW

NEGOTIATION OF OTHER ASAS CONTINUE WITH VARIOUS AVIATION

YEAR.

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