ENG-1995 — Page 70

IMPLEMENTATION OF THE SINO-BRITISH JOINT DECLARATION

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One of the most important groups of subjects still to be resolved relates to the remaining immigration issues on the JLG agenda. Agreement is needed on how to align the Immigration Ordinance with the relevant provisions of the Basic Law. It will also be necessary to consider how the SAR passport and travel documents will be issued from July 1, 1997. Arrangements must be made to ensure that Hong Kong residents can travel as easily as possible to third countries once the SAR is established.

Economic issues form another category to be resolved. There is a need, for example, to reach a common view on some franchises and contracts that straddle 1997, as well as on various infrastructural projects.

Land Commission

The Sino-British Land Commission was established in 1985 in accordance with Annex III to the Joint Declaration and will be dissolved on June 30, 1997. Its function is to conduct consultations on the implementation of the provisions of Annex III on land leases and other related matters. It meets in Hong Kong and has had 31 formal meetings up to December 1995.

The Land Commission has made solid progress since its establishment. It has reached agreement on 26 legal documents to be used in various types of land transactions covered by the provisions of Annex III; on effecting by legislation the extension of New Territories leases in accordance with paragraph 2 of Annex III; and - on the principles for dealing with special purpose leases. In 1994, agreement was reached on arrangements for granting the land required for the new airport at Chek Lap Kok and the Airport Railway.

The Land Commission held its 30th meeting in May 1995 and its 31st in November. The two sides agreed to make available, during the 1995-96 financial year, a total of about 205 hectares of land. This takes to 2 564 hectares the total amount of land that the Land Commission has agreed to make available since its establishment.

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 in Hong Kong. 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. By September 30, 1995, more than $84,080 million had been transferred to the fund. This represents the future SAR Government's share of premium income since the Joint Declaration came into force on May 27, 1985.

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