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22 March 1989]
MINUTES OF EVIDENCE TAKEN BEFORE
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from the Hong Kong Government. The Chinese Senior Representative has throughout been Ambassador Ke Zaishuo.
21. Annex II also provides that the JLG shall meet in Peking, London and Hong Kong, and shall hold at least one meeting in each of the three locations in each year. The first Plenary meeting was held in July 1985; in all there have been twelve so far. The next is due to take place in Peking from 14-17 March 1989. Plenary meetings have been supplemented by meetings of a standing sub-group on international rights and obligations, and by meetings of experts to consider particular agenda items, held as necessary.
22. Annex II further provides that, from 1 July 1988, the JLG shall have its principal base in Hong Kong. In accordance with that provision, the two sides established offices in Hong Kong on that date. All the Chinese members of the JLG (except for one, who is resident in London), together with supporting staff, are now based in Hong Kong. The British Senior Representative at present remains based in London, travelling to Hong Kong as necessary. The British side of the JLG depends heavily on co- operation with the Hong Kong Government, which maintains a separate branch of the Government Secretariat (the General Duties Branch) to deal with JLG and other future-related business. This relationship with the Hong Kong Government is particularly important because it helps to ensure that Hong Kong concerns are taken fully into account in the implementation of the Joint Declaration.
23. Annex B to this memorandum contains a list of agreements so far reached by the JLG. They cover among other things Hong Kong's new status as a separate contracting party to the GATT, Hong Kong's continued participation in a long list of international organisations; transitional arrangements for the different types of travel and identity documents used by Hong Kong people; the establishment of Hong Kong's own air services agreements; separate from those of the UK; the expansion of the Police Force to resume anti-illegal immigration duties currently undertaken by the British forces; and a wide variety of legal matters, including the localisation in Hong Kong of UK legislation which applies to Hong Kong. These agreements are the fruit of detailed and complex discussions. Taken together, they represent an impressive achievement, reflecting the determination of the two Governments to implement the provisions of the Joint Declaration fully and effectively. But there is still much to be done.
24. A second body set up under the Joint Declaration is the Sino-British Land Commission, whose terms of reference are specified in Annex III to the Joint Declaration, which deals with land leases. The Commission has agreed that leases in the New Territories referred to in that Annex should be extended to 2047. The New Territories Leases (Extension) Ordinance gives effect to this agreement. The Commis- sion is also charged with deciding whether the annual limit of 50 hectares on land disposal specified in the Joint Declaration should be exceeded. In practice the Commission has exercised considerable flexibility and has agreed each year so far that the limit should be exceeded. The programme agreed for 1988/89 covered some 150 hectares. This includes substantial land grants for the seventh container terminal and for the third university.
25. Under the terms of the Joint Declaration, premium income from land transactions, after deduction of the average cost of land reclamation, clearance and other related costs, is shared equally between the Hong Kong Government and the future SAR Government. (The Chinese side of the Land Commission manage their share of the income in trust, through a Hong Kong SAR Government Land Fund and an Investment Committee.) Almost HK$10 billion has so far been credited to the account of the future SAR Government.
26. Ministers have taken a close interest in the implementation of the Joint Declaration. The work of the JLG and other aspects of implementation have featured regularly in the Foreign Secretary's talks with his Chinese counterpart-on nine occasions since 1985-and in other exchanges at Ministerial level.
27. A key aspect of the implementation of the Joint Declaration is the drafting of the Basic Law. That is dealt with in Section XI of this memorandum.
VIII:
DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG
28. The system of government in Hong Kong has evolved in a way which has reflected the particular circumstances of the territory. In other British dependent territories our policy has been to promote the development of democracy as part of the preparations for eventual independence. There has however never been any question of Hong Kong becoming an independent state: different considerations have applied. Indeed, when relatively modest proposals for constitutional reform were made by the then Governor in the period following the Second World War, they met with virtually no public support in Hong Kong. The territory was preoccupied with absorbing and accommodating very large numbers of migrants, mainly from China, and with adjusting economically to the loss of its entrepot trade with
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