TNAG-1760-FCO40-2513-Future-of-Hong-Kong-11th-meeting-of-the-Sino-British-Joint-L-1988 — Page 7

CONFIDENTIAL

060370

MDLOAN 3292

CONCLUDE ITS OWN EXTRADITION AGREEMENTS WITH OTHER JURISDICATIONS IN A FORM WHICH WILL ENABLE THEM TO CONTINUE IN FORCE BEYOND 1997. EXPERTS WILL MEET IN JANUARY TO DISCUSS FURTHER DETAILS. ONCE THESE ARE SORTED OUT HONG KONG WILL BE IN A POSITION TO BEGIN NEGOTIATING ITS OWN 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.

FOR THE BACKGROUND ON LOCALISATION OF LEGISLATION, SEE PARA 5 OF OUR TELNO 674. 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 EXPECT EXPERT TALKS ON THE LOCALISATION OF MERCHANT SHIPPING LEGISLATION SOON. RECENTLY PASSED TO THE CHINESE SIDE PAPERS ON THE LOCALISATION OF CIVIL AVIATION LEGISLATION.

WE HAVE

8. ON AIR SERVICES AGREEMENTS, THE TWO SIDES NOTED RECENT PROGRESS. A FURTHER TWO HONG KONG/THIRD COUNTRY ASAS ARE EXPECTED TO BE SIGNED EARLY IN THE NEW YEAR, BRINGING THE TOTAL TO FIVE SO FAR. NEGOTIATIONS CONTINUE WITH HONG KONG'S AVIATION PARTNERS ON OTHER AGREEMENTS.

9.

THERE WAS A FURTHER EXCHANGE ON OUR PROPOSALS FOR THE ESTABLISHMENT OF A COURT OF FINAL APPEAL IN HONG KONG BEFORE 1997. EXPERT TALKS WILL BE HELD SOON. EXPERTS WILL NEED TO WORK OUT MANY LEGAL, TECHNICAL AND PRACTICAL COMPLEXITIES.

HOWE

YYYY

2

PAGE

CONFIDENTIAL