ENG-1988 — Page 69

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IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

the future Special Administrative Region (SAR) Government. The average cost of land production is determined and adjusted by the Land Commission annually, and for the 1988-9 financial year, the agreed figure was $2,150 per square metre. The future SAR Government's share of premium income is held in a trust fund, called the Hong Kong Special Administrative Region Government Land Fund, established by the Chinese side of the Land Commission. The fund is managed under the direction and advice of an Investment Committee, which includes among its members prominent bankers in Hong Kong, as well as a monetary expert of the Hong Kong Government. Over $9,700 million, representing the future SAR Government's share of premium income for the period May 27, 1985 to September 30, 1988, has been transferred to the fund. The Hong Kong Government's share, including the cost of land production, stands at around $10,910 million.

The Basic Law

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Paragraph 3(12) of the Joint Declaration provides that the basic policies of the People's Republic of China (PRC) regarding Hong Kong will be stipulated in a Basic Law of the Hong Kong Special Administrative Region by the National People's Congress (NPC) of the PRC, and will remain unchanged for 50 years. For the purpose of drafting the Basic Law, the Chinese Government appointed a Basic Law Drafting Committee (BLDC), which comprises mainland as well as Hong Kong members. A Basic Law Consultative Committee (BLCC), consisting exclusively of Hong Kong members of broad representation, was also established to solicit extensively the views of Hong Kong people on the draft Basic Law.

After more than two years of deliberations in the BLDC, the first complete draft of the Basic Law, called 'The Draft Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China (For Solicitation of Opinions)', was published in April subsequent to its endorsement at the Seventh BLDC Plenum. A five-month consultation exercise, conducted by the BLCC, was then held in Hong Kong. Two delegations of the mainland members of the BLDC, led by senior Chinese officials, visited Hong Kong in June and September to canvass public opinion on the Draft Basic Law at first hand.

A wide range of views on various aspects of the Draft Basic Law were expressed during the consultation period. In June and July, both Houses of the British Parliament debated the document. On both occasions, Her Majesty's Government, as a co-signatory of the Joint Declaration, reaffirmed their commitment to ensuring the full and faithful reflection of the Joint Declaration in the Basic Law. Debates on the Draft Basic Law were also held in the Legislative Council, the two Municipal Councils and a number of District Boards. The records of some of these debates, including those of the Legislative Council debate held in July, were conveyed to the Chinese Government through diplomatic channels.

In November, the five Special Groups under the BLDC resumed discussion to consider how the first draft of the Basic Law should be revised. A second draft, subject to endorsement by the Standing Committee of the NPC, is expected to be published in early 1989 for further public consultation. The Basic Law will be enacted by the NPC in 1990.