TNAG-2573-FCO40-3759-Future-of-Hong-Kong-adaptation-of-laws-1992 — Page 19

CODE 18-77

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Reference..

land ownership, in the same way that the Crown (through the Letters Patent) is the same as the present Government of Hong Kong. However, it seems to me that this across-the-board replacement might cause some disquiet on the Chinese side because of the seeming legal conflict between "Government" and "State" as detailed above. This I assume is the rationale behind the first sentence of para 7 of the draft paper.

6.

Hong Kong's solution to this problem is "a provision in the amending legislation to the effect that references to the government in relation to land and natural resources do not mean that the land and natural resources are the property of the government" (second sentence of para 7). However, as you point out in your minute, this would not make much sense pre-1997.

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In the light of all the above - if I have the position right I would be grateful for your opinion on how best to make it clear that the proposed change of nomenclature will in no way change the status of the land and natural resources up

to 30 June 1997, or prejudice Article 7 of the Basic Law from 1 July 1997 onwards.

8.

Firstly it will have to be made clear to the Chinese in the draft paper.

In this respect I think the point you make in para 3 of your minute is largely covered by the second sentence of para 8 of the draft paper. Perhaps para 8 should be split into two paragraphs in order to make the meaning clearer?

9. Secondly, Hong Kong think it should be made clear in the amending legislation (second sentence of para 7). You point out that their suggested provision would not really be accurate pre-1997. Just to clarify your para 3: should there therefore be a provision in the amending legislation to the effect that no change in the status of the land and natural resources is contemplated before 1 July 1997, as well as one in the draft paper?

10. Forgive me if this minute reveals my legal ignorance more than it does a problem with Hong Kong's draft paper.

Jaethan Masall

J N Marshall

Hong Kong Department

WH305

270-3287

5 November 1992

cc: Miss Fletcher, RMU

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