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IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

Land Commission

The Sino-British Land Commission was established in 1985 in accordance with Annex III to the Joint Declaration. Its function is to conduct consultations on the implementation of the provisions of Annex III on land leases and other related matters. It holds meetings in Hong Kong.

The Land Commission held its 28th and 29th meetings in April and November 1994, respectively. The two sides agreed to make available, during the 1994–95 financial year, a total of about 1 410.73 hectares of land. This included, among other things, 1 248 hectares of land for the new airport at Chek Lap Kok; 7.52 hectares for airport railway-related property development; and about 30 hectares for the airport railway depot at Siu Ho Wan, North Lantau.

Under the terms of the Joint Declaration, premium income obtained by the Hong Kong Government from land transactions is, after the deduction of the cost of land production, to be shared equally between the Hong Kong Government and the future SAR Government. The Hong Kong Government's share of premium income is put into the Capital Works Reserve Fund for financing public works and land development. The future SAR Government's share 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 prominent bankers in Hong Kong, as well as a monetary expert from the Hong Kong Government. Over $68,636 million, representing the future SAR Government's share of premium income for the period May 27, 1985 to December 31, 1994, has been transferred to the fund.

The Basic Law

The Joint Declaration provides that the basic policies of the People's Republic of China regarding Hong Kong will be stipulated in a Basic Law of the Hong Kong SAR by China's National People's Congress (NPC). The Basic Law Drafting Committee and Basic Law Consultative Committee were established in 1985 to undertake the drafting of the Basic Law and to canvass public views on the drafts of the Basic Law. The first draft was published in April 1988 and the second draft in February 1989. The Basic Law was promulgated in April 1990 by the NPC, together with the designs for the flag and emblem of the SAR. It will come into effect on July 1, 1997.

Like the Joint Declaration, the Basic Law provides that the SAR will enjoy a high degree of autonomy and that the capitalist system and way of life shall remain unchanged for 50 years after July 1, 1997. It also prescribes the systems to be practised in the SAR.