TNAG-1862-FCO40-2639-Future-of-Hong-Kong-Basic-Law-1989 — Page 58

Problem

CONFIDENTL

15

Preferred Redraft

Possible Channels

Art. 14(4) and Art. 22(3): The draft BL provides that PIC

organs established in HK and their staff, including PLA stationed here, shall abide by

SAR laws, but it is silent on

whether the SAR courts shall

have jurisdiction over them.

The BL should preferably contain an enabling provision to provide for: (i) the determination by SAR courts of

litigation involving organs and authorities of the PRC; and (ii) the arrangement of compensation by

such organs and authorities where

there has been loss or damage.

A possible form of words is as follows: "Provisions for the determination by the courts of the SAR of cases involving organs and authorities of the PRC or their staff

(including those referred to in Articles 14

and 22 of Chapter II), and for the payment of compensation by such organs or authorities or members of such staff, shall

be prescribed by a law of the SAR."

This is a subject of considerable

sensitivity to the Chinese and the

drafters are disinclined to make

an express provision in the BL in this regard. It may be more

fruitful to probe the Chinese

further on this issue when we

discuss the question of the garrison and the law in the

defence talks and when we broach

them on the proposed amendments to

the Crown Proceedings Ordinance.

CONFIDENTIAL

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