TNAG-2877-FCO40-4149-Future-of-Hong-Kong-adaptation-of-laws-1993 — Page 42

GOVERMENT HOUSE HONG KONG.

FRI 12 NOU 93, 08:24

PG.13

CONFIDENTIAL

ANALYSIS

6

9.

As a matter of law, the Crown Agents could continue to act for the Hong Kong Government in accordance with the existing law on 1 July 1997 and thereafter. However, it is possible and indeed probable that the Chinese side would take the view that continued use of the Crown Agents by the Hong Kong SARG and institutions of the HKSAR would be inconsistent with Chinese sovereignty and thus with the Basic Law. So far as is known, there is no equivalent PRC organisation which could play an equivalent role; nor would it be desirable for Hong Kong's finances to be required as a matter of law to be tied up with any PRC organisation. The best course is therefore, wherever practicable, to remove from Hong Kong's laws all reference to the Crown Agents.

PROPOSALS

TX

10.

Subject to the views of the Steering Group, the following adaptations of law are proposed :

(a) The term "Crown Agents" in s.27 (2) of Cap. 2 (see

+

para.7(a) above) should be deleted. There have been

discussions between AGC and the Director of

Accounting Services on whether a new term such as

"financial institution" or

or "agent appointed by the Financial Secretary" could

replacement.

be

added

as

a

The Secretary for the Treasury will be

asked to comment on the proposal.

CONFIDENTIAL