ENG-1997 — Page 34

ESTABLISHMENT OF THE HKSAR

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exchanged and the agreement entered into force. It was registered at the United Nations by the British and Chinese Governments on June 12, 1985.

The Basic Law

The Basic Law provides a constitutional framework for the Hong Kong Special Administrative Region. It institutionalises the concept of 'one country two systems'.

The Basic Law Drafting Committee and Basic Law Consultative Committee were established in 1985 to undertake the drafting of the document and to canvass public views on the drafts.

The first draft was published in April 1988, followed by a five-month public consultation exercise. The second draft, endorsed in February 1989 by the Standing Committee of the National People's Congress (NPC) for further consultation, reflected many of the views expressed during the first round of consultation. The second consultation exercise ended in October 1989. The second draft of the Basic Law was further reviewed in the light of the outcome of that exercise and formally adopted in April 1990 by the NPC, together with the designs for the flag and emblem of the SAR. The Basic Law came into effect on July 1, 1997.

The Basic Law clearly prescribes that the social, economic and political systems in Hong Kong will be different from those in the mainland of China. It protects the rights, freedoms and life-style of Hong Kong people. The Basic Law guarantees the independence of Hong Kong's judiciary and, apart from foreign affairs and defence, gives Hong Kong people full responsibility to manage their own affairs. It allows the HKSAR complete financial autonomy, and the independence of its monetary system. It establishes Hong Kong as a separate customs territory, and enables it to work directly with the international community to control trade in strategic commodities, drugs, illegal transshipments, and to protect intellectual property rights.

Preparation for the Establishment of the HKSAR Preparatory Committee

The Preparatory Committee was formally set up on January 26, 1996, in accordance with a decision of the NPC on April 4, 1990. It comprised 150 members 94 from Hong Kong and 56 from the Mainland who were appointed by the Standing

Committee of the NPC.

The establishment of the Preparatory Committee was preceded by the setting up of the Preliminary Working Committee (PWC) on July 16, 1993. The PWC was an advisory body with its 69 Members drawn from Hong Kong and the Mainland. Five sub-groups were set up under the PWC — the Political, Economic, Legal, Social and Security and Cultural Sub-groups. The PWC held six plenary sessions and a number of meetings and seminars were also conducted by the sub-groups. The last plenary session was held in December 1995. The PWC had successfully completed a huge amount of ground work which contributed significantly to the smooth operation of the Preparatory Committee.

The Preparatory Committee was responsible for preparing for the establishment of the HKSAR, including the prescription of the method for the formation of the first government and the first Legislative Council of the HKSAR. It was also responsible