TNAG-2289-FCO40-3293-Future-of-Hong-Kong-Basic-Law-1991 — Page 91

II: THE RESUMPTION OF SOVEREIGNTY

5. The essential policy of the PRC for Hong Kong is described in the phrase "one country two systems". Hong Kong is to become a Special Administrative Region (the SAR) in accordance with Article 31 of the PRC Constitution "directly under the authority of the Central People's Government"; it is to enjoy "a high degree of autonomy, except in foreign and defence affairs which are the responsibility of the Central People's Government" and "executive, legislative and independent judicial power, including that of final adjudication"; its executive and legislature are to be composed of local inhabitants; and its current capitalist "social and economic systems" will remain unchanged and its current laws basically unchanged.

6. These references to a special administrative region and a high degree of autonomy, and the statement that the SAR would be "directly under the authority of the Central People's Government", say next to nothing about the constitutional position of a special administrative region in relation to the rest of China or to the Central Authorities of the State - the NPC, its Standing Committee or the CPG. Such relationships can only be understood in the light of Chinese concepts of the nature of the PRC and its constitution. Apart from a bare reference to Article 31 of the PRC Constitution, the Joint Declaration did not spell out the constitutional setting to the specific proposals which were made for Hong Kong as distinct from the

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