CONFIDENTIAL
15 532
MDHIAN 0945
AGREEMENTS WITH STUDENTS ON LOANS AND GRANTS, OR EVEN TRADE AGREEMENTS BETWEEN HKG AND THIRD COUNTRIES? IT IS THUS IMPOSSIBLE TO GIVE ANY MEANINGFUL FIGURE. SECONDLY, WE DO NOT WISH TO PLAY INTO CHINESE HANDS. ANY FIGURE THAT WE QUOTE WOULD IMMEDIATELY RESULT IN THE CHINESE ASKING FOR DETAILS OF ALL THE CONTRACTS AND AGREEMENTS, AND DEMAND CONSULTATION ON THEM. WE ARE NOT PREPARED AT THIS STAGE TO GET OURSELVES INTO THAT POSITION.
3. PART (B) OF THE LEGCO QUESTION IS PREDICATED ON THE CHINESE POSITION THAT NO CONTRACTS OR AGREEMENTS ARE VALID AFTER 1997 WITHOUT THEIR EXPLICIT APPROVAL. WHATEVER WE MIGHT DO IN PRACTICE BY WAY OF CONSULTATION WITH THE CHINESE, WE CANNOT LET THIS PASS WITHOUT COMMENT. WE HAVE IN FACT RESPONDED PUBLICLY IN THE TERMS OF PARA. 2 OF OUR TELNO 2793. WE WOULD PREFER TO STICK CLOSELY TO THIS LINE IN ANSWER TO THE LEGCO QUESTION.
4. HAVING REGARD TO THE FOREGOING CONSIDERATIONS, WE PROPOSE TO REPLY TO THE LEGCO QUESTION AS FOLLOWS:
'IT IS NOT (NOT) CLEAR FROM THE CHINESE GOVERNMENT'S STATEMENT EXACTLY WHAT IS MEANT BY THE EXPRESSION CONTRACTS, LEASES AND AGREEMENTS'. IT IS THUS NOT POSSIBLE TO GIVE ANY FIGURES IN ANSWER TO PARTS (A) AND (C) OF THE HONOURABLE MEMBER'S QUESTION.
AS REGARDS PART (B) OF THE HONOURABLE MEMBER'S QUESTION, THE GOVERNMENT'S POSITION IS AS FOLLOWS:
(A) THE JOINT DECLARATION MAKES CLEAR THAT AFTER THE ESTABLISHMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION, THE LAWS PREVIOUSLY IN FORCE IN HONG KONG, WHICH INCLUDE THE LAW OF CONTRACT, SHALL BE MAINTAINED, SAVE FOR ANY THAT CONTRAVENE THE BASIC LAW AND SUBJECT TO ANY AMENDMENT BY THE HONG KONG SPECIAL ADMINISTRATIVE REGION LEGISLATURE.
(B) ACCORDING TO THE BASIC LAW, CONTRACTS WHICH ARE VALID UNDER HONG KONG'S EXISTING LAWS WILL CONTINUE TO BE VALID AND RECOGNISED AND PROTECTED BY THE HONG KONG SPECIAL ADMINISTRATIVE REGION, PROVIDED THAT THEY DO NOT CONTRAVENE THE BASIC LAW.
(C) HOWEVER SINCE AUGUST 1990 WHEN THE CHINESE GOVERNMENT FIRST APPROACHED US ON THIS MATTER, WE HAVE DISCUSSED MAJOR GOVERNMENT FRANCHISES AND CONTRACTS STRADDLING 1997 IN THE JOINT LIAISON GROUP. THESE DISCUSSIONS HAVE BEEN PRODUCTIVE IN THE
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