Loyola of Los Angeles International Loyola of Los Angeles International

and Comparative Law Review and Comparative Law Review

Volume 7 Number 1 Article 6

1-1-1984

Official Publication: Sino-British Joint Declaration on the Question Official Publication: Sino-British Joint Declaration on the Question

of Hong Kong of Hong Kong

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Recommended Citation Recommended Citation , Official Publication: Sino-British Joint Declaration on the Question of Hong Kong, 7 Loy. L.A. Int'l & Comp. L. Rev. 139 (1984). Available at: https://digitalcommons.lmu.edu/ilr/vol7/iss1/6

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OFFICIAL PUBLICATIONS

Sino-British Agreement DeterminesFuture of Hong Kong

On September 26, 1984, British Ambassador to the People's Re-public of China (China) Richard Evans and Chinese Deputy For-eign Minister Zhou Nan initialed an agreement that will determinethe future of the British Colony of Hong Kong. The product of overtwo years of negotiations, the Sino-British agreement provides forChina to regain sovereignty of Hong Kong in 1997, the year Bri-tian's lease on more than ninety percent of the Colony's territory isdue to expire.

Britian first acquired possession of Hong Kong in the nine-teenth century through a series of treaties with the then existing Chi-nese Government. The Treaty of Nanking, signed in 1842, cededHong Kong Island to Britian in perpetuity. A subsequent treaty in1898 gave Britian a ninety-nine year leasehold on the island fromJuly 1, 1898. During the ensuing period of British control, the Col-ony's economy has flourished. Hong Kong has become one of theworld's largest financial centers and now occupies a distinct positionin the international trading community.

In the 1970's, however, the fast approaching termination dateon Britian's lease created concern over the future of Hong Kongamong both the island's inhabitants and foreign investors. That allindividual land leases were set to expire in 1997 combined with theinability of the Hong Kong Government to grant new ones beyondthis period created particular fear that foreign investment in theColony would be greatly deterred.

Against this background, Britian and China reached an agree-ment which calls for Hong Kong to become a "Special Administra-tive Region of the People's Republic of China" on July 1, 1997.Though bringing the Colony and its accompanying free enterprisesystem under the sovereign control of Communist China, the agree-ment reassures that Hong Kong's "flourishing free market economywill continue." Thus, its free port and international banking systemwill remain intact, as will its market of foreign exchange. In addi-tion to such general statements, the detailed agreement sets out spe-

140 Loy. LA. Int'l & COmp. L. J. [Vol. 7:139

cific provisions dealing with the myriad aspects of life in post-1997Hong Kong.'

This historic agreement between Britian and China is reprintedbelow in its entirety.

1. The Sino-British Treaty concerning Hong Kong was officially signed by both par-ties on December 19, 1984, in Beijing, People's Republic of China. See also Comment, TheLegal Implications of the Sino-British Treaties Regarding Hong Kong, 4 Loy. L.A. IN''L &COMP. L.J. 111 (1981) (provides background analysis of the political, legal and economicfactors that affect Hong Kong's future in relation to the People's Republic of China).

1984] Sino-British Joint Declaration 141

Sino-British Joint Declaration On TheQuestion Of Hong Kong*

TABLE OF CONTENTS

JOINT DECLARATION OF THE GOVERNMENT OF THE UNITEDKINGDOM OF GREAT BRITAIN AND NORTHERN IRELANDAND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OFCHINA ON THE QUESTION OF HONG KONG .............. 142

ANNEX IELABORATION BY THE GOVERNMENT OF THE PEOPLE'S

REPUBLIC OF CHINA OF ITS BASIC POLICIES REGARDING

H ONG K ONG ............................................. 145ANNEX IISINO-BRITISH JOINT LIAISON GROUP ......................... 158ANNEX IIILAND LEASES ................................................. 160MEMORANDA (To BE EXCHANGED BETWEEN THE TwoS ID ES) ......................................................... 162

* Permission to reprint granted by the British Consulate, Los Angeles, California.

Loy. L.A. Int'l & Comp. L. J

JOINT DECLARATION OF THE GOVERNMENT OF THE UNITEDKINGDOM OF GREAT BRITAIN AND NORTHERN

IRELAND AND THE GOVERNMENT OF THE

PEOPLE'S REPUBLIC OF CHINA ONTHE QUESTION OF HONG KONG

The Government of the United Kingdom of Great Britain andNorthern Ireland and the Government of the People's Republic ofChina have reviewed with satisfaction the friendly relations existingbetween the two Governments and peoples in recent years andagreed that a proper negotiated settlement of the question of HongKong, which is left over from the past, is conducive to the mainte-nance of the prosperity and stability of Hong Kong and to the fur-ther stengthening and development of the relations between the twocountries on a new basis. To this end, they have, after talks betweenthe delegations of the two Governments, agreed to declare asfollows:

1. The Government of the People's Republic of China de-clares that to recover the Hong Kong area (including Hong KongIsland, Kowloon and the New Territories, hereinafter referred to asHong Kong) is the common aspiration of the entire Chinese people,and that it has decided to resume the exercise of sovereignty overHong Kong with effect from 1 July 1997.

2. The Government of the United Kingdom declares that itwill restore Hong Kong to the People's Republic of China with ef-fect from 1 July 1997.

3. The Government of the People's Republic of China de-clares that the basic policies of the People's Republic of China re-garding Hong Kong are as follows:

(1) Upholding national unity and territorial integrity andtaking account of the history of Hong Kong and its realities, thePeople's Republic of China has decided to establish, inacordance with the provisions of Article 31 of the Constitutionof the People's Republic of China, a Hong Kong Special Ad-ministrative Region upon resuming the exercise of sovereigntyover Hong Kong.

(2) The Hong Kong Special Administrative Region will bedirectly under the authority of the Central People's Govern-ment of the People's Republic of China. The Hong Kong Spe-cial Administrative Region will enjoy a high degree of

[Vol. 7:139

Sino-British Joint Declaration

autonomy, except in foreign and defence affairs which are theresponsibilities of the Central People's Government.

(3) The Hong Kong Special Administrative Region will bevested with executive, legislative and independent judicialpower, including that of final adjudication. The laws currentlyin force in Hong Kong will remain basically unchanged.

(4) The Government of the Hong Kong Special Adminis-trative Region will be composed of local inhabitants. The chiefexecutive will be appointed by the Central People's Govern-ment on the basis of the results of elections or consultations tobe held locally. Principal officials will be nominated by thechief executive of the Hong Kong Special Administrative Re-gion for appointment by the Central People's Government.Chinese and foreign nationals previously working in the publicand police services in the government departments of HongKong may remain in employment. British and other foreign na-tionals may also be employed to serve as advisers or hold cer-tain public posts in government departments of the Hong KongSpecial Administrative Region.

(5) The current social and economic systems in HongKong will remain unchanged, and so will the life-style. Rightsand freedoms, including those of the person, of speech, of thepress, of assembly, of association, of travel, of movement, ofcorrespondence, of strike, of choice of occupation, of academicresearch and of religious belief will be ensured by law in theHong Kong Special Administrative Region. Private property,ownership of enterprises, legitimate right of inheritance andforeign investment will be protected by law.

(6) The Hong Kong Special Adminstrative Region will re-tain the status of a free port and a separate customs territory.

(7) The Hong Kong Special Administrative Region willretain the status of an international financial centre, and itsmarkets for foreign exchange, gold, securities and futures willcontinue. There will be free flow of capital. The Hong Kongdollar will continue to circulate and remain freely convertible.

(8) The Hong Kong Special Administrative Region willhave independent finances. The Central People's Governmentwill not levy taxes on the Hong Kong Special AdministrativeRegion.

(9) The Hong Kong Special Administrative Region may

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144 Loy. L.A. Int'l & Comp. L. J [Vol. 7:139

establish mutually beneficial economic relations with theUnited Kingdom and other countries, whose economic interestsin Hong Kong will be given due regard.

(10) Using the name of "Hong Kong, China", the HongKong Special Administrative Region may on its own maintainand develop economic and cultural relations and conclude rele-vant agreements with states, regions and relevant internationalorganisations.

The Government of the Hong Kong Special Administra-tive Region may on its own issue travel documents for entryinto and exit from Hong Kong.

(11) The maintenance of public order in the Hong KongSpecial Administrative Region will be the responsibility of theGovernment of the Hong Kong Special Administrative Region.

(12) The above-stated basic policies of the People's Re-public of China regarding Hong Kong and the elaboration ofthem in Annex I to this Joint Declaration will be stipulated, ina Basic Law of the Hong Kong Special Administrative Regionof the People's Republic of China, by the National People'sCongress of the People's Republic of China, and they will re-main unchanged for 50 years.4. The Government of the United Kingdom and the Govern-

ment of the People's Republic of China declare that, during thetransitional period between the date of the entry into force of thisJoint Declaration and 30 June 1997, the Government of the UnitedKingdom will be responsible for the administration of Hong Kongwith the object of maintaining and preserving its economic prosper-ity and social stability; and that the Government of the People's Re-public of China will give its cooperation in this connection.

5. The Government of the United Kingdom and the Govern-ment of the People's Republic of China declare that, in order toensure a smooth transfer of government in 1997, and with a view tothe effective implementation of this Joint Declaration, a Sino-BritishJoint Liason Group will be set up when this Joint Declaration entersinto force; and that it will be established and will function in accord-ance with the provisions of Annex II to this Joint Declaration.

6. The Government of the United Kingdom and the Govern-ment of the People's Republic of China declare that land leases inHong Kong and other related matters will be dealt with in accord-ance with the provisions of Annex III to this Joint Declaration.

Sino-Britsh Joint Declaration

7. The Government of the United Kingdom and the Govern-ment of the People's Republic of China agree to implement the pre-ceding declarations and the Annexes to this Joint Declaration.

8. This Joint Declaration is subject to ratification and shallenter into force on the date of the exchange of instruments of ratifi-cation, which shall take place in Beijing before 30 June 1985. ThisJoint Declaration and its Annexes shall be equally binding.

Done in duplicate at Beijing on 1984 in the English andChinese languages, both texts being equally authentic.(Signed) (Signed)For the Government of the For the Government of theUnited Kingdom of Great Britain People's Republic of Chinaand Northern Ireland

ANNEX IELABORATION BY THE GOVERNMENT OF THE PEOPLE'S

REPUBLIC OF CHINA OF ITS BASIC POLICIES

REGARDING HONG KONG

The Government of the People's Republic of China elaboratesthe basic policies of the People's Republic of China regarding HongKong as set out in paragraph 3 of the Joint Declaration of the Gov-ernment of the United Kingdom of Great Britain and Northern Ire-land and the Government of the People's Republic of China on theQuestion of Hong Kong as follows:

I

The Constitution of the People's Republic of China stipulatesin Article 31 that "the state may establish special administrative re-gions when necessary. The systems to be instituted in special admin-istrative regions shall be prescribed by laws enacted by the NationalPeople's Congress in light of the specific conditions." In accordancewith this Article, the People's Republic of China shall, upon the re-sumption of the exercise of sovereignty over Hong Kong on 1 July1997, establish the Hong Kong Special Administrative Region of thePeople's Republic of China. The National People's Congress of thePeople's Republic of China shall enact and promulgate a Basic Lawof the Hong Kong Special Administrative Region of the People'sRepublic of China (hereinafter referred to as the Basic Law) in ac-cordance with the Constitution of the People's Republic of China,

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stipulating that after the establishment of the Hong Kong SpecialAdministrative Region the socialist system and socialist policiesshall not be practised in the Hong Kong Special Administrative Re-gion and that Hong Kong's previous capitalist system and life-styleshall remain unchanged for 50 years.

The Hong Kong Special Administrative Region shall be di-rectly under the authority of the Central People's Government ofthe People's Republic of China and shall enjoy a high degree ofautonomy. Except for foreign and defence affairs which are the re-sponsibilities of the Central People's Government, the Hong KongSpecial Administrative Region shall be vested with executive, legis-lative and independent judicial power, including that of final adju-dication. The Central People's Government shall authorise theHong Kong Special Administrative Region to conduct on its ownthose external affairs specified in Section XI of this Annex.

The government and legislature of the Hong Kong Special Ad-ministrative Region shall be composed of local inhabitants. Thechief executive of the Hong Kong Special Administrative Regionshall be selected by election or through consultations held locallyand be appointed by the Central People's Government. Principalofficials (equivalent to Secretaries) shall be nominated by the chiefexecutive of the Hong Kong Special Administrative Region and ap-pointed by the Central People's Government. The legislature of theHong Kong Special Administrative Region shall be constituted byelections. The executive authorities shall abide by the law and shallbe accountable to the legislature.

In addition to Chinese, English may also be used in organs ofgovernment and in the courts in the Hong Kong Special Adminstra-tive Region.

Apart from displaying the national flag and national emblem ofthe People's Republic of China, the Hong Kong Special Administra-tive Region may use a regional flag and emblem of its own.

II

After the establishment of the Hong Kong Special Administra-tive Region, the laws previously in force in Hong Kong (i.e. thecommon law, rules of equity, ordinances, subordinate legislationand customary law) shall be maintained, save for any that contra-vene the Basic Law and subject to any amendment by the HongKong Special Administrative Region legislature.

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The legislative power of the Hong Kong Special AdministrativeRegion shall be vested in the legislature of the Hong Kong SpecialAdministrative Region. The legislature may on its own authority en-act laws in accordance with the provisions of the Basic Law andlegal procedures, and report them to the Standing Committee of theNational People's Congress for the record. Laws enacted by the leg-islature which are in accordance with the Basic Law and legal pro-cedures shall be regarded as valid.

The laws of the Hong Kong Special Administrative Regionshall be the Basic Law, and the laws previously in force in HongKong and laws enacted by the Hong Kong Special AdministrativeRegion legislature as above.

III

After the establishment of the Hong Kong Special Administra-tive Region, the judicial system previously practised in Hong Kongshall be maintained except for those changes consequent upon thevesting in the courts of the Hong Kong Special Administrative Re-gion of the power of final adjudication.

Judicial power in the Hong Kong Special Administrative Re-gion shall be vested in the courts of the Hong Kong Special Admin-istrative Region. The courts shall exercise judicial powerindependently and free from any interference. Members of the judi-ciary shall be immune from legal action in respect of their judicialfunctions. The courts shall decide cases in accordance with the lawsof the Hong Kong Special Administrative Region and may refer toprecedents in other common law jurisdictions.

Judges of the Hong Kong Special Administrative Region courtsshall be appointed by the chief executive of the Hong Kong SpecialAdministrative Region acting in accordance with the recommenda-tion of an independent commission composed of local judges, per-sons from the legal profession and other eminent persons. Judgesshall be chosen by reference to their judicial qualities and may berecruited from other common law jurisdictions. A judge may onlybe removed for inability to discharge the functions of his office, orfor misbehaviour, by the chief executive of the Hong Kong SpecialAdministrative Region acting in accordance with the recommenda-tion of a tribunal appointed by the chief judge of the court of finalappeal, consisting of not fewer than three local judges. Additionally,the appointment or removal of principal judges (i.e. those of highest

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rank) shall be made by the chief executive with the endorsement ofthe Hong Kong Special Administrative Region legislature and re-ported to the Standing Committee of the National People's Con-gress for the record. The system of appointment and removal ofjudicial officers other than judges shall be maintained.

The power of final judgment of the Hong Kong Special Admin-istrative Region shall be vested in the court of final appeal in theHong Kong Special Administrative Region, which may as requiredinvite judges from the other common law jurisdictions to sit on thecourt of final appeal.

A prosecuting authority of the Hong Kong Special Administra-tive Region shall control criminal prosecutions free from anyinterference.

On the basis of the system previously operating in Hong Kong,the Hong Kong Special Administrative Region Government shallon its own make provision for local lawyers and lawyers fromoutside the Hong Kong Special Administrative Region to work andpractise in the Hong Kong Special Administrative Region.

The Central People's Government shall assist or authorise theHong Kong Special Administrative Region Government to makeappropriate arrangments for reciprocal juridical assistance with for-eign states.

IV

After the establishment of the Hong Kong Special Administra-tive Region, public servants previously serving in Hong Kong in allgovernment departments, including the police department, andmembers of the judiciary may all remain in employment and con-tinue their service with pay, allowances, benefits and conditions ofservice no less favourable than before. The Hong Kong Special Ad-ministrative Region Government shall pay to such persons who re-tire or complete their contracts, as well as to those who have retiredbefore 1 July 1997, or to their dependents, all pensions, gratuities,allowances and benefits due to them on terms no less favourablethan before, and irrespective of their nationality or place ofresidence.

The Hong Kong Special Administrative Region Governmentmay employ British and other foreign nationals previously servingin the public service in Hong Kong, and may recruit British andother foreign nationals holding permanent identity cards of the

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Hong Kong Special Administrative Region to serve as public ser-vants at all levels, except as heads of major government departments(corresponding to branches or departments at Secretary level) in-cluding the police department, and as deputy heads of some of thosedepartments. The Hong Kong Special Administrative Region Gov-ernment may also employ British and other foreign nationals as ad-visers to government departments and, when there is a need, mayrecruit qualified candidates from outside the Hong Kong SpecialAdministrative Region to professional and technical posts in gov-ernment departments. The above shall be employed only in theirindividual capacities and, like other public servants, shall be respon-sible to the Hong Kong Special Administrative RegionGovernment.

The appointment and promotion of public servants shall be onthe basis of qualifications, experience and ability. Hong Kong's pre-vious system of recruitment, employment, assessment, discipline,training and management for the public service (including specialbodies for appointment, pay and conditions of service) shall, savefor any provisions providing privileged treatment of foreign nation-als, be maintained.

V

The Hong Kong Special Administrative Region shall deal onits own with financial matters, including disposing of its financialresources and drawing up its budgets and its final accounts. TheHong Kong Special Administrative Region shall report its budgetsand final accounts to the Central People's Government for therecord.

The Central People's Government shall not levy taxes on theHong Kong Special Administrative Region. The Hong Kong Spe-cial Administrative Region shall use its financial revenues exclu-sively for its own purposes and they shall not be handed over to theCentral People's Government. The systems by which taxation andpublic expenditure must be approved by the legislature, and bywhich there is accountability to the legislature for all public expen-diture, and the system for auditing public accounts shall bemaintained.

VI

The Hong Kong Special Administrative Region shall maintain

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Loy. L.A. Int' & Comp. L. .

the capitalist economic and trade systems previously practised inHong Kong. The Hong Kong Special Administrative Region Gov-ernment shall decide its economic and trade policies on its own.Rights concerning the ownership of property, including those relat-ing to acquisition, use, disposal, inheritance and compensation forlawful deprivation (corresponding to the real value of the propertyconcerned, freely convertible and paid without undue delay) shallcontinue to be protected by law.

The Hong Kong Special Administrative Region shall retain thestatus of a free port and continue a free trade policy, including thefree movement of goods and capital. The Hong Kong Special Ad-ministrative Region may on its own maintain and develop economicand trade relations with all states and regions.

The Hong Kong Special Administrative Region shall be a sepa-rate customs territory. It may participate in relevant internationalorganisations and international trade agreements (including prefer-ential trade arrangements), such as the General Agreement on Tar-iffs and Trade and arrangments regarding international trade intextiles. Export quotas, tariff preferences and other similar arrang-ments obtained by the Hong Kong Special Administrative Regionshall be enjoyed exclusively by the Hong Kong Special Administra-tive Region. The Hong Kong Special Administrative Region shallhave authority to issue its own certificates of origin for productsmanufactured locally, in accordance with prevailing rules of origin.

The Hong Kong Special Administrative Region may, as neces-sary, establish official and semi-official economic and trade missionsin foreign countries, reporting the establishment of such missions tothe Central People's Government for the record.

VII

The Hong Kong Special Administrative Region shall retain thestatus of an international financial centre. The monetary and finan-cial systems previously practised in Hong Kong, including the sys-tems of regulation and supervision of deposit taking institutions andfinancial markets, shall be maintained.

The Hong Kong Special Administrative Region Governmentmay decide its monetary and financial policies on its own. It shallsafeguard the free operation of financial business and the free flowof capital within, into and out of the Hong Kong Special Adminis-trative Region. No exchange control policy shall be applied in the

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Hong Kong Special Administrative Region. Markets for foreign ex-change, gold, securities and futures shall continue.

The Hong Kong dollar, as the local legal tender, shall continueto circulate and remain freely convertible. The authority to issueHong Kong currency shall be vested in the Hong Kong Special Ad-minstrative Region Government. The Hong Kong Special Adminis-trative Region Government may authorise designated banks to issueor continue to issue Hong Kong currency under statutory authority,after satisfying itself that any issue of currency will be soundlybased and that the arrangements for such issue are consistent withthe object of maintaining the stability of the currency. Hong Kongcurrency bearing references inappropriate to the status of HongKong as a Special Administrative Region of the People's Republicof China shall be progressively replaced and withdrawn fromcirculation.

The Exchange Fund shall be managed and controlled by theHong Kong Special Administrative Region Government, primarilyfor regulating the exchange value of the Hong Kong dollar.

VIII

The Hong Kong Special Administrative Region shall maintainHong Kong's previous systems of shipping management and ship-ping regulation, including the system for regulating conditions ofseamen. The specific functions and responsibilities of the HongKong Special Administrative Region Government in the field ofshipping shall be defined by the Hong Kong Special AdministrativeRegion Government on its own. Private shipping businesses andshipping-related businesses and private container terminals in HongKong may continue to operate freely.

The Hong Kong Special Administrative Region shall beauthorised by the Central People's Government to continue tomaintain a shipping register and issue related certificates under itsown legislation in the name of "Hong Kong, China".

With the exception of foreign warships, access for which re-quires the permission of the Central People's Government, shipsshall enjoy access to the ports of the Hong Kong Special Adminis-trative Region in accordance with the laws of the Hong Kong Spe-cial Administrative Region.

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Ix

The Hong Kong Special Administrative Region shall maintainthe status of Hong Kong as a centre of international and regionalaviation. Airlines incorporated and having their principal place ofbusiness in Hong Kong and civil aviation related businesses maycontinue to operate. The Hong Kong Special Administrative Regionshall continue the previous system of civil aviation management inHong Kong, and keep its own aircraft register in accordance withprovisions laid down by the Central People's Government concern-ing nationality marks and registration marks of aircraft. The HongKong Special Administrative Region shall be responsible on its ownfor matters of routine business and technical management of civilaviation, including the management of airports, the provision of airtraffic services within the ffight information region of the HongKong Special Administrative Region, and the discharge of other re-sponsibilities allocated under the regional air navigation proceduresof the International Civil Aviation Organisation.

The Central People's Government shall, in consultation withthe Hong Kong Special Administrative Region Government, makearrangements providing for air services between the Hong KongSpecial Administrative Region and other parts of the People's Re-public of China for airlines incorporated and having their principalplace of business in the Hong Kong Special Administrative Regionand other airlines of the People's Republic of China. All Air ServiceAgreements providing for air services between other parts of thePeople's Republic of China and other states and regions with stopsat the Hong Kong Special Administrative Region and air servicesbetween the Hong Kong Special Administrative Region and otherstates and regions with stops at other parts of the People's Republicof China shall be concluded by the Central People's Government.For this purpose, the Central People's Government shall take ac-count of the special conditions and economic interests of the HongKong Special Administrative Region and consult the Hong KongSpecial Administrative Region Government. Representatives of theHong Kong Special Administrative Region Government may par-ticipate as members of delegations of the Government of the Peo-ple's Republic of China in air service consultations with foreigngovernments concerning arrangements for such services.

Acting under specific authorisations from the Central People's

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Government, the Hong Kong Special Administrative Region Gov-ernment may:

- renew or amend Air Service Agreements and arrangementspreviously in force; in principle, all such Agreements andarrangements may be renewed or amended with the rightscontained in such previous Agreements and arrangementsbeing as far as possible maintained;

- negotiate and conclude new Air Service Agreements provid-ing routes for airlines incorporated and having their princi-pal place of business in the Hong Kong SpecialAdministrative Region and rights for overflights and techni-cal stops; and

- negotiate and conclude provisional arrangements where noAir Service Agreement with a foreign state or other region isin force.

All scheduled air services to, from or through the Hong Kong Spe-cial Administrative Region which do not operate to, from orthrough the mainland of China shall be regulated by Air ServiceAgreements or provisional arrangements referred to in thisparagraph.

The Central People's Government shall give the Hong KongSpecial Administrative Region Government the authority to:

- negotiate and conclude with other authorities all arrange-ments concerning the implementation of the above Air Ser-vice Agreements and provisional arrangements;

- issue licences to airlines incorporated and having their prin-cipal place of business in the Hong Kong Special Adminis-trative Region;

- designate such airlines under the above Air Service Agree-ments and provisional arrangements; and

- issue permits to foreign airlines for services other than thoseto, from or through the mainland of China.

x

The Hong Kong Special Administrative Region shall maintainthe educational system previously practised in Hong Kong. TheHong Kong Special Administrative Region Government shall on itsown decide policies in the fields of culture, education, science andtechnology, including policies regarding the educational system andits administration, the language of instruction, the allocation of

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funds, the examination system, the system of academic awards andthe recognition of educational and technological qualifications. In-stitutions of all kinds, including those run by religious and commu-nity organisations, may retain their autonomy. They may continueto recruit staff and use teaching materials from outside the HongKong Special Administrative Region. Students shall enjoy freedomof choice of education and freedom to pursue their educationoutside the Hong Kong Special Administrative Region.

XI

Subject to the principle that foreign affairs are the responsibil-ity of the Central People's Government, representatives of the HongKong Special Administrative Region Government may participate,as members of delegations of the Government of the People's Re-public of China, in negotiations at the diplomatic level directly af-fecting the Hong Kong Special Administrative Region conducted bythe Central People's Government. The Hong Kong Special Admin-istrative Region may on its own, using the name "Hong Kong,China", maintain and develop relations and conclude and imple-ment agreements with states, regions and relevant international or-ganisations in the appropriate fields, including the economic, trade,financial and monetary, shipping, communications, touristic, cul-tural and sporting fields. Representatives of the Hong Kong SpecialAdministrative Region Government may participate, as members ofdelegations of the Government of the People's Republic of China,in international organisations or conferences in appropriate fieldslimited to states and affecting the Hong Kong Special Administra-tive Region, or may attend in such other capacity as may be permit-ted by the Central People's Government and the organisation orconference concerned, and may express their views in the name of"Hong Kong, China". The Hong Kong Special Administrative Re-gion may, using the name "Hong Kong, China", participate in inter-national organisations and conferences not limited to states.

The application to the Hong Kong Special Administrative Re-gion of international agreements to which the People's Republic ofChina is or becomes a party shall be decided by the Central People'sGovernment, in accordance with the circumstances and needs of theHong Kong Special Administrative Region, and after seeking theviews of the Hong Kong Special Administrative Region Govern-ment. International agreements to which the People's Republic of

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China is not a party but which are implemented in Hong Kong mayremain implemented in the Hong Kong Special Administrative Re-gion. The Central People's Government shall, as necessary,authorise or assist the Hong Kong Special Administrative RegionGovernment to make appropriate arrangements for the applicationto the Hong Kong Special Administrative Region of other relevantinternational agreements. The Central People's Government shalltake the necessary steps to ensure that the Hong Kong Special Ad-mistrative Region shall continue to retain its status in an appropri-

ate capacity in those international organisations of which thePeople's Republic of China is a member and in which Hong Kongparticipates in one capacity or another. The Central People's Gov-ernment shall, where necessary, facilitate the continued participa-tion of the Hong Kong Special Administrative Region in anappropriate capacity in those international organisations in whichHong Kong is a participant in one capacity or another, but of whichthe People's Republic of China is not a member.

Foreign consular and other official or semi-official missionsmay be established in the Hong Kong Special Administrative Re-gion with the approval of the Central People's Government. Consu-lar and other official missions established in Hong Kong by stateswhich have established formal diplomatic relations with the Peo-ple's Republic of China may be maintained. According to the cir-cumstances of each case, consular and other official missions ofstates having no formal diplomatic relations with the People's Re-public of China may either be maintained or changed to semi-offi-cial missions. States not recognised by the People's Republic ofChina can only establish non-governmental institutions.

The United Kingdom may establish a Consulate-General in theHong Kong Special Administrative Region.

XII

The maintenance of public order in the Hong Kong SpecialAdministrative Region shall be the responsibility of the Hong KongSpecial Administrative Region Governm'ent. Military forces sent bythe Central People's Government to be stationed in the Hong KongSpecial Administrative Region for the purpose of defence shall notinterfere in the internal affairs of the Hong Kong Special Adminis-trative Region. Expenditure for these military forces shall be borneby the Central People's Government.

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XIII

The Hong Kong Special Administrative Region Governmentshall protect the rights and freedoms of inhabitants and other per-sons in the Hong Kong Special Administrative Region according tolaw. The Hong Kong Special Administrative Region Governmentshall maintain the rights and freedoms as provided for by the lawspreviously in force in Hong Kong, including freedom of the person,of speech, of the press, of assembly, of association, to form and jointrade unions, of correspondence, of travel, of movement, of strike, ofdemonstration, of choice of occupation, of academic research, of be-lief, inviolability of the home, the freedom to marry and the right toraise a family freely.

Every person shall have the right to confidential legal advice,access to the courts, representation in the courts by lawyers of hischoice, and to obtain judicial remedies. Every person shall have theright to challenge the actions of the executive in the courts.

Religious organisations and believers may maintain their rela-tions with religious organisations and believers elsewhere, andschools, hospitals and welfare institutions run by religious organisa-tions may be continued. The relationship between religious or-ganisations in the Hong Kong Special Administrative Region andthose in other parts of the People's Republic of China shall be basedon the principles of non-subordination, non-interference and mu-tual respect.

The provisions of the International Covenant on Civil andPolitical Rights and the International Covenant on Economic, So-cial and Cultural Rights as applied to Hong Kong shall remain inforce.

XIV

The following categories of persons shall have the right ofabode in the Hong Kong Special Administrative Region, and, inaccordance with the law of the Hong Kong Special AdministrativeRegion, be qualified to obtain permanent identity cards issued bythe Hong Kong Special Administrative Region Government, whichstate their right of abode:

all Chinese nationals who were born or who have ordinarilyresided in Hong Kong before or after the establishment ofthe Hong Kong Special Administrative Region for a contin-

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uous period of 7 years or more, and persons of Chinese na-tionality born outside Hong Kong of such Chinesenationals;

- all other persons who have ordinarily resided in Hong Kongbefore or after the establishment of the Hong Kong SpecialAdministrative Region for a continuous period of 7 years ormore and who have taken Hong Kong as their place of per-manent residence before or after the establishment of theHong Kong Special Administrative Region, and personsunder 21 years of age who were born of such persons inHong Kong before or after the establishment of the HongKong Special Administrative Region;

- any other persons who had the right of abode only in HongKong before the establishment of the Hong Kong SpecialAdministrative Region.

The Central People's Government shall authorise the HongKong Special Administrative Region Government to issue, in ac-cordance with the law, passports of the Hong Kong Special Admin-istrative Region of the People's Republic of China to all Chinesenationals who hold permanent identity cards of the Hong KongSpecial Administrative Region, and travel documents of the HongKong Special Administrative Region of the People's Republic ofChina to all other persons lawfully residing in the Hong Kong Spe-cial Administrative Region. The above passports and documentsshall be valid for all states and regions and shall record the holder'sright to return to the Hong Kong Special Administrative Region.

For the purpose of travelling to and from the Hong Kong Spe-cial Administrative Region, residents of the Hong Kong Special Ad-ministrative Region may use travel documents issued by the HongKong Special Administrative Region Government, or by other com-petent authorities of the People's Republic of China, or of otherstates. Holders of permanent identity cards of the Hong Kong Spe-cial Administrative Region may have this fact stated in their traveldocuments as evidence that the holders have the right of abode inthe Hong Kong Special Administrative Region.

Entry into the Hong Kong Special Administrative Region ofpersons from other parts of China shall continue to be regulated inaccordance with the present practice.

The Hong Kong Special Administrative Region Governmentmay apply immigration controls on entry, stay in and departure

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from the Hong Kong Special Administrative Region by person fromforeign states and regions.

Unless restrained by law, holders of valid travel documentsshall be free to leave the Hong Kong Special Administrative Regionwithout special authorisation.

The Central People's Government shall assist or authorise theHong Kong Special Administrative Region Government to con-clude visa abolition agreements with states or regions.

ANNEX IISINO-BRITISH JOINT LIAISON GROUP

1. In furtherance of their common aim and in order to ensurea smooth transfer of government in 1997, the Government of thePeople's Republic of China and the Government of the UnitedKingdom have agreed to continue their discussions in a friendlyspirit and to develop the cooperative relationship which already ex-ists between the two Governments over Hong Kong with a view tothe effective implementation of the Joint Declaration.

2. In order to meet the requirements for liaison, consultationand the exchange of information, the two Governments have agreedto set up a Joint Liaison Group.

3. The functions of the Joint Liaison Group shall be:(a) to conduct consultations on the implementation of the

Joint Declaration;(b) to discuss matters relating to the smooth transfer of

government in 1997;(c) to exchange information and conduct consultations on

such subjects as may be agreed by the two sides.Matters on which there is disagreement in the Joint Liaison Groupshall be referred to the two Governments for solution throughconsultations.

4. Matters for consideration during the first half of the periodbetween the establishment of the Joint Liaison Group and 1 July1997 shall include:

(a) action to be taken by the two Governments to enablethe Hong Kong Special Administrative Region to maintain itseconomic relations as a separate customs territory, and in par-ticular to ensure the maintenance of Hong Kong's participation

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in the General Agreement on Tariffs and Trade, the MultifibreArrangement and other international arrangements; and

(b) action to be taken by the two Governments to ensurethe continued application of international rights and obliga-tions affecting Hong Kong.5. The two Governments have agreed that in the second half

of the period between the establishment of the Joint Liaison Groupand 1 July 1997 there will be need for closer cooperation, which willtherefore be intensified during that period. Matters for considera-tion during this second period shall include:

(a) procedures to be adopted for the smooth transition in1997;

(b) action to assist the Hong Kong Special AdministrativeRegion to maintain and develop economic and cultural rela-tions and conclude agreements on these matters with states, re-gions and relevant international organizations.6. The Joint Liaison Group shall be an organ for liaison and

not an organ of power. It shall play no part in the administration ofHong Kong or the Hong Kong Special Administrative Region. Norshall it have any supervisory role over that administration. Themembers and supporting staff of the Joint Liaison Group shall onlyconduct activities within the scope of the functions of the Joint Liai-son Group.

7. Each side shall designate a senior representative, who shallbe of Ambassadorial rank, and four other members of the group.Each side may send up to 20 supporting staff.

8. The Joint Liaison Group shall be established on the entryinto force of the Joint Declaration. From I July 1988 the Joint Liai-son Group shall have its principal base in Hong Kong. The JointLiaison Group shall continue its work until 1 January 2000.

9. The Joint Liaison Group shall meet in Beijing, London andHong Kong. It shall meet at least once in each of the three locationsin each year. The venue for each meeting shall be agreed betweenthe two sides.

10. Members of the Joint Liaison Group shall enjoy diplo-matic privileges and immunities as appropriate when in the threelocations. Proceedings of the Joint Liason Group shall remain confi-dential unless otherwise agreed between the two sides.

11. The Joint Liaison Group may by agreement between the

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two sides decide to set up specialist sub-groups to deal with particu-lar subjects requiring expert assistance.

12. Meetings of the Joint Liason Group and sub-groups maybe attended by experts other than the members of the Joint LiaisonGroup. Each side shall determine the composition of its delegationto particular meetings of the Joint Liaison Group or sub-group inaccordance with the subjects to be discussed and the venue chosen.

13. The working procedures of the Joint Liaison Group shallbe discussed and decided upon by the two sides within the guide-lines laid down in this Annex.

ANNEX IIILAND LEASES

The Government of the United Kingdom and the Governmentof the People's Republic of China have agreed that, with effect fromthe entry into force of the Joint Declaration, land leases in HongKong and other related matters shall be dealt with in accordancewith the following provisions:

1. All leases of land granted or decided upon before the entryinto force of the Joint Declaration and those granted thereafter inaccordance with paragraphs 2 or 3 of this Annex, and which extendbeyond 30 June 1997, and all rights in relation to such leases shallcontinue to be recognised and protected under the law of the HongKong Special Administrative Region.

2. All leases of land granted by the British Hong Kong Gov-ermnent not containing a right of renewal that expire before 30 June1997, except short term tenancies and leases for special purposes,may be extended if the lessee so wishes for a period expiring notlater than 30 June 2047 without payment of an additional premium.An annual rent shall be charged from the date of extensionequivalent to 3 per cent of the rateable value of the property at thatdate, adjusted in step with any changes in the rateable value thereaf-ter. In the case of old schedule lots, village lots, small houses andsimilar rural holdings, where the property was on 30 June 1984 heldby, or, in the case of small houses granted after that date, the prop-erty is granted to, a person descended through the male line from aperson who was in 1898 a resident of an established village in HongKong, the rent shall remain unchanged so long as the property isheld by that person or by one of his lawful successors in the maleline. Where leases of land not having a right of renewal expire after

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30 June 1997, they shall be dealt with in accordance with the rele-vant land laws and policies of the Hong Kong Special Administra-tive Region.

3. From the entry into force of the Joint Declaration until 30June 1997, new leases of land may be granted by the British HongKong Government for terms expiring not later than 30 June 2047.Such leases shall be granted at a premium and nominal rental until30 June 1997, after which date they shall not require payment of anadditional premium but an annual rent equivalent to 3 per cent ofthe rateable value of the property at that date, adjusted in step withchanges in the rateable value thereafter, shall be charged.

4. The total amount of new land to be granted under para-graph 3 of this Annex shall be limited to 50 hectares a year (exclud-ing land to be granted to the Hong Kong Housing Authority forpublic rental housing) from the entry into force of the Joint Declara-tion until 30 June 1997.

5. Modifications of the conditions specified in leases grantedby the British Hong Kong Government may continue to be grantedbefore 1 July 1997 at a premium equivalent to the difference be-tween the value of the land under the previous conditions and itsvalue under the modified conditions.

6. From the entry into force of the Joint Declaration until 30June 1997, premium income obtained by the British Hong KongGovernment from land transactions shall, after deduction of the av-erage cost of land production, be shared equally between the BritishHong Kong Government and the future Hong Kong Special Ad-ministrative Region Government. All the income obtained by theBritish Hong Kong Government, including the amount of theabove-mentioned deduction, shall be put into the Capital WorksReserve Fund for the financing of land development and publicworks in Hong Kong. The Hong Kong Special Administrative Re-gion Government's share of the premium income shall be depositedin banks incorporated in Hong Kong and shall not be drawn onexcept for the financing of land development and public works inHong Kong in accordance with the provisions of paragraph 7 (d) ofthis Annex.

7. A Land Commission shall be established in Hong Kongimmediately upon the entry into force of the Joint Declaration. TheLand Commission shall be composed of an equal number of offi-cials designated respectively by the Government of the United

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Kingdom and the Government of the People's Republic of Chinatogether with necessary supporting staff. The officials of the twosides shall be responsible to their respective governments. The LandCommission shall be dissolved on 30 June 1997.

The terms of reference of the Land Commission shall be:(a) to conduct consultations on the implementation of this

Annex;(b) to monitor observance of the limit specified in para-

graph 4 of this Annex, the amount of land granted to the HongKong Housing Authority for public rental housing, and the di-vision and use of premium income referred to in paragraph 6 ofthis Annex;

(c) to consider and decide on proposals from the BritishHong Kong Government for increasing the limit referred to inparagraph 4 of this Annex;

(d) to examine proposals for drawing on the Hong KongSpecial Administrative Region Government's share of pre-mium income referred to in paragraph 6 of this Annex and tomake recommendations to the Chinese side for decision. Mat-ters on which there is disagreement in the Land Commissionshall be referred to the Government of the United Kingdomand the Government of the People's Republic of China fordecision.8. Specific details regarding the establishment of the Land

Commission shall be finalised separately by the two sides throughconsultations.

MEMORANDA(To BE EXCHANGED BETWEEN THE Two SIDES)

(A) UNITED KINGDOM MEMORANDUM

In connection with the Joint Declaration of the Government ofthe United Kingdom of Great Britain and Northern Ireland and theGovernment of the People's Republic of China on the question ofHong Kong to be signed this day, the Government of the UnitedKingdom declares that, subject to the completion of the necessaryamendments to the relevant United Kingdom legislation:

(a) All persons who on 30 June 1997 are, by virtue of aconnection with Hong Kong, British Dependent Territories Cit-izens (BDTCs) under the law in force in the United Kingdomwill cease to be BDTCs with effect from 1 July 1997, but will be

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eligible to retain an appropriate status which, without confer-ring the right of abode in the United Kingdom, will entitlethem to continue to use passports issued by the Government ofthe United Kingdom. This status will be acquired by such per-sons only if they hold or are included in such a British passportissued before 1 July 1997, except that eligible persons born onor after 1 January 1997 but before 1 July 1997 may obtain or beincluded in such a passport up to 31 December 1997.

(b) No person will acquire BDTC status on or after 1 July1997 by virtue of a connection with Hong Kong. No personborn on or after 1 July 1997 will acquire the status referred toas being appropriate in sub-paragraph (a).

(c) United Kingdom consular officials in the Hong KongSpecial Administrative Region and elsewhere may renew andreplace passports of persons mentioned in sub-paragraph (a)and may also issue them to persons, born before 1 July 1997 ofsuch persons, who had previously been included in the passportof their parent.

(d) Those who have obtained or been included in pass-ports issued by the Government of the United Kingdom undersub-paragraphs (a) and (c) will be entitled to receive, upon re-quest, British consular services and protection when in thirdcountries.

(B) CHINESE MEMORANDUM

The Government of the People's Republic of China has re-ceived the memorandum from the Government of the United King-dom of Great Britain and Northern Ireland dated 1984.

Under the Nationality Law of the People's Republic of China,all Hong Kong Chinese compatriots, whether they are holders of the"British Dependent Territories Citizens' Passport" or not, are Chi-nese nationals.

Taking account of the historical background of Hong Kongand its realities, the competent authorities of the Government of thePeople's Republic of China will, with effect from 1 July 1997, permitChinese nationals in Hong Kong who were previously called "Brit-ish Dependent Territories Citizens" to use travel documents issuedby the Government of the United Kingdom for the purpose oftravelling to other states and regions.

The above Chinese nationals will not be entitled to British con-

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sular protection in the Hong Kong Special Administrative Regionand other parts of the People's Republic of China on account oftheir holding the above-mentioned British travel documents.