TNAG-1839-FCO40-2614-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 13

SECURITY CLASSIFICATION

Top Secret

DSR 11C (Revised 5/87)

the Agreement is a separate Exchange of Memoranda on the

status after 1997 of Hong Kong British passport holders.

Secret

Confidential

Restricted

Unclassified

PRIVACY MARKING

13. The Joint Declaration sets out the essentials of

what had been agreed by the two governments. It outlined

the policies of the Chinese Government towards Hong Kong

after 1997, which were further elaborated in Annex I.

Paragraph 7 stipulated that the two governments agree to

implement the Joint Declaration and Annexes. It has the

effect of making them legally binding on both parties.

In Confidence

14. The detail of the Agreement is contained in the

Annexes. The first Annex describes Chinese policies

towards Hong Kong after 1997. (For convenience, Annex I

to this Memorandum contains a summary of the key points).

The second Annex to the Joint Declaration describes the

terms of the Joint Liaison Group (see paragraphs 19-20

below). The third Annex deals with the question of land

leases, which are to be dealt with through the work of

the Land Commission (see paragraph 21 below). The

associated Exchange of Memoranda is discussed in greater

detail in the section of this Memorandum on nationality

(paragraphs 49-53 below).

VI: Hong Kong since the signing of the Joint

Declaration:

the Economy

15.

As indicated earlier, while the question of Hong

Kong's future remained unresolved, Hong Kong faced the

prospect of a steady erosion of confidence and a declinë