TNAG-1870-FCO40-2658-Relations-between-Hong-Kong-and-Macau.-With-map-1989 — Page 132

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The Macao Special Administrative Region shall draw up on its own its budget and taxation policy. The Macao Special Administrative Region shall report its budgets and final ac- counts to the Central People's Government for the record. The Macao Special Administrative Region shall use its finan- cial revenues exclusively for its own purposes and they shall not be handed over to the Central People's Government. The Central People's Government shall not levy taxes on the Macao Special Administrative Region.

XIII

The Central People's Government shall be responsible for the defence of the Macao Special Administrative Region.

The maintenance of public order in the Macao Special Administrative Region shall be the responsibility of the Macao Special Administrative Region Government.

XIV

Legal leases of land granted or decided upon before the establishment of the Macao Special Administrative Region and extending beyond 19 December 1999, and all rights in relation to such leases shall be recognised and protected ac- cording to law by the Macao Special Administrative Region. Land leases approved or renewed after the establishment of the Macao Special Administrative Region shall be dealt with in accordance with the relevant land laws and policies of the Macao Special Administrative Region.

ANNEX II

ARRANGEMENTS FOR

THE TRANSITIONAL PERIOD

In order to ensure the effective implementation of the Joint Declaration of the Government of the People's Republic of China and the Government of the Republic of Portugal on the Question of Macao and create appropriate conditions for the transfer of government of Macao, the Govern- ment of the People's Republic of China and the Govern- inent of the Republic of Portugal have agreed to continue their friendly cooperation during the transitional period between the date of the entry into force of the Joint Declaration and 19 December 1999.

For this purpose, the Government of the People's Republic of China and the Government of the Republic of Portugal have agreed to set up a Sino-Portuguese Joint Liaison Group and a Sino-Portuguese Land Group in accordance with the provisions of paragraphs 3, 4 and 5 of the Joint Declaration.

I. Sino-Portuguese Joint Liaison Group

1. The Joint Liaison Group shall be an organ for liaison, consultation and exchange of information between the two Governments. It shall not interfere in the administration of Macao, nor shall it have any supervisory role over that ad- ministration.

2. The functions of the Joint Liaison Group shall be:

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