TNAG-2576-FCO40-3763-Legal-and-procedural-arrangements-between-Hong-Kong-and-Chin-1992 — Page 13

CONFIDENTIAL

XCX(92)59

CHINA DIMENSION

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In considering how and when to take this matter up in the JLG

we have taken into account the following points

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(a) given that we are dealing with a part of the PRC's relations with the SAR after 1997, the Chinese may take the view that this is exclusively their business and that they will take care of it after 1997;

(b)

(c)

for a similar reason, the Chinese may well not accept that any conclusions reached should be recorded in Memoranda of Understanding of the kind recommended in the Report; they may well consider it inappropriate to apply to relations between the PRC and SAR the substance of documents which are essentially international in character, even though not legally binding as such; and

once discussions on this subject start, the Chinese may attempt to extend discussions into the criminal field (e.g. rendition of fugitive offenders) which we would prefer to take separately and later.

We have however concluded that (a) should not deter us from going forward to see how far we can get in implementing the important recommendations in the Report. In addition, the present arrangements in some of the areas considered by the Working Party are not satisfactory and need to be improved before 1997 anyway.

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On (b), we consider that we ought to begin with the proposal of recording our agreements on the various subjects in MOUs as recommended by the Working Party. We should retreat to something less satisfactory only if we have to.

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With regard to (c), as there is nothing we can do to stop the Chinese trying to extend discussions into the criminal field, we should go ahead now to try to solve the very important civil and commercial problems without waiting until we are ready to discuss criminal matters. If the Chinese do attempt to link the two we shall simply have to try to uncouple them. We have some very good arguments to use, not least that the Working Party Report is very clear about the urgency of proceeding in the commercial legal field and that that view is shared by the business community in Hong Kong.

Executive Council

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