(ii)
(iii)
If, however, I have misunderstood the position with regard to the continued effect of either of the Hong Kong Ordinances mentioned above then I agree that the draft model treaty seems to provide a satisfactory basis for an agreement. I have not yet studied it in detail.
It would in our view by a serious matter if, from 1 July 1997 onwards, there were a gap of uncertain duration during which there were no reciprocal enforcement arrangements. In view of the extent of trade and commercial contacts between the UK and Hong Kong, any significant gap would be undesirable. If, of course, the present arrangements can survive 1997, then there is not problem: in that case, if it were decided (as might be perfectly reasonable) that a new agreement would ultimately be desirable, the existing arrangements would fill the gap until the new Hong Kong SAR government got round to ratifying it.
Yours sincerely
Махника
awatherston
249/dcr
JA C WATHERSTON
Head of International Division
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