TNAG-1863-FCO40-2643-Future-of-Hong-Kong-Basic-Law-1989 — Page 68

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DEPARTURE FROM THE JOINT DECLARATION.

A POSSIBLE SOLUTION WOULD BE TO INCLUDE IN CHAPTER V, SECTION I OF THE BASIC LAW A NEW ARTICLE : QUOTE THE HONG KONG SPECIAL ADMINISTRATIVE REGION SHALL DECIDE ITS ECONOMIC AND TRADE POLICIES ON ITS OWN UNQUOTE. (D) QUOTE MONETARY AND FINANCIAL POLICIES UNQUOTE: THE SECOND PARAGRAPH OF ARTICLE 109 GIVES EFFECT TO THE SECOND PARAGRAPH OF SECTION VII OF ANNEX I TO THE JOINT DECLARATION. THE FIRST PARAGRAPH OF ARTICLE 109, HOWEVER, IS NOT PROVIDED FOR IN THE JOINT DECLARATION AND ITS REQUIREMENT TO PRESCRIBE THE MONETARY AND FINANCIAL SYSTEMS BY LAW, NOT ONLY GOES BEYOND THE REQUIREMENT IN THE SECOND PARAGRAPH OF SECTION VII OF ANNEX I BUT IS NOT CONSISTENT WITH THE PRESENT BASIS OF HONG KONG'S FINANCIAL SYSTEM (WHICH IS REGULATED, BUT NOT PRESCRIBED, BY LAW). IT IS, THEREFORE, SUGGESTED THAT THE FIRST PARAGRAPH OF ARTICLE 109 BE DELETED.

(E) AIR SERVICES AGREEMENTS: YOU MAY RECALL THAT IN THE DETAILED

NOTES WHICH THE BRITISH EMBASSY DELIVERED TO THE MINISTRY OF FOREIGN AFFAIRS ON 26 FEBRUARY 1988, WE DREW ATTENTION TO THE FACT THAT WHAT IS NOW ARTICLE 132(1) (ARTICLE 139(1) IN THE 1988 TEXT) DOES NOT REFLECT THE PROVISION IN THE JOINT DECLARATION (FIRST INDENT OF THIRD PARAGRAPH OF SECTION IX OF ANNEX I) THAT ON THE RENEWAL OR AMENDMENT OF AIR SERVICES AGREEMENTS AND ARRANGEMENTS, EXISTING RIGHTS MAY IN PRINCIPLE BE MAINTAINED. THAT IS STILL THE CASE.

HURD

YYYY

DISTRIBUTION

62

ΜΑΙΝ

59

.HONG KONG AGREEMENT

.(RESTRICTED)

LIMITED

HKD

HD/FED

RESEARCH (FE)

PUSD

NEWS D

PS/MR MAUDE

PS/LORD BRABAZON

MR GILLMORE

MR MCLAREN

MR MOSS

ADDITIONAL

3

MR EDWARDS LEGAL ADV

MR WHOMERSLEY LEGAL ADV

MR FIFOOT HKD

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