Sino-British Joint Declaration, 1984
[see also
Hong Kong Government Web Site ]
An Agreement between the Government of the United Kingdom of
Great Britain and Northern Ireland and the Government of the People's Republic
of China on the Future of Hong Kong signed on 19 December 1984.
UK Government White Paper
Joint Declaration
Annex I: Elaboration by the Government
of the People's Republic of China of its Basic Policies regarding Hong Kong
Explanatory Notes on Annex I
Some Salient Features
of Joint Declaration...
"...The Constitution of the People's Republic of China
stipulates in Article 31 that "the state may establish special
administrative regions when necessary... In accordance with this
Article, the People's Republic of China shall, upon the resumption of
the exercise of sovereignty over Hong Kong on 1 July 1997, establish the
Hong Kong Special Administrative Region of the People's Republic of
China... Except for foreign and defence affairs which are the
responsibilities of the Central People's Government, the Hong Kong
Special Administrative Region shall be vested with executive,
legislative and independent judicial power, including that of final
adjudication. The Central People's Government shall authorise the Hong
Kong Special Administrative Region to conduct on its own those external
affairs specified in Section XI of this Annex... The maintenance of
public order in the Hong Kong Special Administrative Region will be the
responsibility of the Government of the Hong Kong Special Administrative
Region... Military forces sent by the Central People's Government to be
stationed in the Hong Kong Special Administrative Region for the purpose
of defence shall not interfere in the internal affairs of the Hong Kong
Special Administrative Region..." |
White Paper issued by UK Government
1. On 26 September 1984 representatives of the Governments of
the United Kingdom and of the People's Republic of China initialled the draft
text of an agreement on the future of Hong Kong. The agreement, contained in the
second part of this White Paper, consists of a Joint Declaration and three
Annexes. There is an associated Exchange of Memoranda. These documents are the
outcome of two years of negotiations between the two Governments, undertaken
with the common aim of maintaining the stability and prosperity of Hong Kong.
2. The purpose of this White Paper is to explain the background to the last two
years' negotiations and their course, and to present the documents in their
proper context. The text of this White Paper is also being published in Hong
Kong by the Hong Kong Government, and the people of Hong Kong are being invited
to comment on the overall acceptability of the arrangements which it describes.
Thereafter the matter will be debated in Parliament.
History
3. During the nineteenth century Britain concluded three
treaties with the then Chinese Government relating to Hong Kong: the Treaty of
Nanking, signed in 1842 and ratified in 1843 under which Hong Kong Island was
ceded in perpetuity; the Convention of Peking in 1860 under which the southern
part of the Kowloon peninsula and Stonecutters Island were ceded in perpetuity;
the Convention of 1898 under which the New Territories (comprising 92 per cent
of the total land area of the territory) were leased to Britain for 99 years
from 1 July 1898. It was the fact that the New Territories are subject to a
lease with a fixed expiry date which lay behind the decision by Her Majesty's
Government to seek to enter negotiations with the Government of the People's
Republic of China (referred to hereafter as "the Chinese Government") on Hong
Kong's future.
4. The Chinese Government has consistently taken the view that the whole of Hong
Kong is Chinese territory. Its position for many years was that the question of
Hong Kong came into the category of unequal treaties left over from history;
that it should be settled peacefully through negotiations when conditions were
ripe; and that pending a settlement the status quo should be maintained. The
Chinese Government made its view of Hong Kong's status clear in a letter to the
Chairman of the United Nations Special Committee on the Situation with regard to
the Implementation of the Declaration on the Granting of Independence to
Colonial Countries and Peoples in March 1972. This maintained that the
settlement of the question of Hong Kong was a matter of China's sovereign right
and that consequently Hong Kong should not be included in the list of colonial
territories covered by the Declaration on the Granting of Independence to
Colonial Countries and Peoples.
The Background to the Negotiations
5. In the late 1970's, as the period before the termination of
the New Territories lease continued to shorten, concern about the future of Hong
Kong began to expressed both in the territory itself and among foreign
investors. In particular there was increasing realisation of the problem posed
by individual land lease granted in the New Territories, all of which are set to
expire three days before the expiry of the New Territories lease in 1997. It was
clear that the steadily shortening span of these leases and the inability of the
Hong Kong Government to grant new ones extending beyond 1997 would be likely to
deter investment and damage confidence.
6. Her Majesty's Government had by this time, following a
detailed examination of the problem conducted in consultation with the then
Governor concluded that confidence would begin to erode quickly in the early to
mid-1980's if nothing was done to alleviate the uncertainty caused by the 1997
deadline. Accordingly, when the Governor of Hong Kong visited Peking in March
1979 at the invitation of the Chinese Minister of Foreign Trade, an attempt was
made, on the initiative of Her Majesty's Government, to solve the specific
question of land leases expiring in 1997. These discussions did not result in
measures to solve the problem.
7. In the course of the next two years there was increasing awareness of the
need to remove the uncertainty which the 1997 deadline generated. The importance
of the issue was publicly stressed by the senior Unofficial Member of the
Executive Council in May 1982. In January 1982 Sir (then Mr) Humphrey Atkins,
Lord Privy Seal, visited Peking and was given significant indications of Chinese
policy towards Hong Kong by Chinese leaders, which confirmed the view of Her
Majesty's Government that negotiations should be opened with the Chinese
Government.
The Prime Minister's Visit to China
8. Against this background Her Majesty's Government decided that
the Prime Minister's visit to China in September 1982 would provide an
opportunity to open discussions with the Chinese Government on the future of
Hong Kong. It was evident that the Chinese Government had reached the same
conclusion, and substantive discussions took place during the visit. Following a
meeting between the Prime Minister and Chairman Deng Xiaoping on 24 September
1982 the following joint statement was issued:
"Today the leaders of both countries held far-reaching talks in
a friendly atmosphere on the future of Hong Kong. Both leaders made clear their
respective positions on the subject. They agreed to enter talks through
diplomatic channels following the visit with the common aim of maintaining the
stability and prosperity of Hong Kong."
The Course of the Negotiations
9. The Prime Minister's visit was followed by the first phase of
negotiations conducted by Her Majesty's Ambassador in Peking and the Chinese
Foreign Ministry. These consisted of exchanges between the two sides on the
basis on which the negotiations would be conducted, and on the agenda. On 1 July
1983 it was announced that the second phase of the talks would begin in Peking
on 12 July. The pattern of negotiation in the second phase, which was continued
until the end of the negotiations, was for formal rounds of talks to be held
between delegations led by Her Majesty's Ambassador in Peking and a Vice or
Assistant Minister of the Chinese Foreign Ministry, supplemented as necessary by
informal contacts between the two delegations. The Governor of Hong Kong took
part in every round of formal talks as a member of the British delegation.
10. In the course of the negotiations Her Majesty's Government
explained in detail the systems which prevail in Hong Kong and the importance
for these systems of the British administrative role and link. Following
extensive discussion, however, it became clear that the continuation of British
administration after 1997 would not be acceptable to China in any form. After
full consultation with the Governor and the Executive Council of Hong Kong, Her
Majesty's Government therefore proposed that the two sides discuss on a
conditional basis what effective measures other than continued British
administration might be devised to maintain the stability and prosperity of Hong
Kong and explore further the Chinese ideas about the future which had at that
stage been explained to them, in order to see whether on this basis arrangements
which would ensure lasting stability and prosperity for Hong Kong could be
constructed.
The Chinese Government was told that, if this process was
successful, Her Majesty's Government would consider recommending to Parliament a
bilateral agreement enshrining the arrangements. Her Majesty's Government also
undertook in this event to assist in the implementation of such arrangements.
Following this, Her Majesty's Government sought to explore with the Chinese
Government the implications of the Chinese Government's concept of Hong Kong as
a Special Administrative Region of the People's Republic of China. In response,
the Chinese side further elaborated its policies and ideas.
11. In April 1984 the two sides completed initial discussion of these matters.
There were a number of outstanding unresolved points, but it was by then clear
that an acceptable basis for an agreement might be possible. At the invitation
of the Chinese Government the Secretary of State for Foreign and Commonwealth
Affairs visited Peking from 15 to 18 April. During his meetings with Chinese
leaders the two sides reviewed the course of the talks on the future of Hong
Kong, and further progress was made. In Hong Kong on 20 April Sir Geoffrey Howe
made a statement on the approach of Her Majesty's Government to the
negotiations.
He said that it would not be realistic to think of an agreement
that provided for continued British administration in Hong Kong after 1997: for
that reason Her Majesty's Government had been examining with the Chinese
Government how it might be possible to arrive at arrangements that would secure
for Hong Kong, after 1997, a high degree of autonomy under Chinese sovereignty,
and that would preserve the way of life in Hong Kong, together with the
essentials of the present systems. He made it clear that Her Majesty's
Government were working for a framework of arrangements that would provide for
the maintenance of Hong Kong's flourishing and dynamic society, and an agreement
in which such arrangements would be formally set out.
12. After Sir Geoffrey Howe's visit in April 1984 negotiations continued. A
working group was established on 21 June 1984 to meet full-time in Peking and
consider documents tabled by both sides. From 27 to 31 July 1984 the Secretary
of State for Foreign and Commonwealth Affairs again visited Peking. The visit
was devoted almost entirely to the future of Hong Kong. Sir Geoffrey Howe
announced in Hong Kong on 1 August that very substantial progress had been made
towards agreement on the form and content of documents which would set out
arrangements for Hong Kong's future with clarity and precision, in legally
binding form.
13. Sir Geoffrey also announced on the same occasion that the two sides had
agreed to establish a Sino-British Joint Liaison Group which would come into
being when the agreement came into force and continue until the year 2000. It
would meet in Peking, London and Hong Kong. It was agreed that the Group would
not be an organ of power. Its functions would be: liaison, consultation on the
implementation of the agreement, and exchange of information. It was agreed that
it would play no part in the administration of Hong Kong. Her Majesty's
Government would continue to be responsible for the administration of Hong Kong
up to 30 June 1997.
14. Following Sir Geoffrey Howe's visit the negotiations continued on the
remaining unresolved issues and three further rounds of plenary talks took
place. A further ad hoc working group was established in Peking on 24 August. By
18 September negotiators on both sides had approved the English and Chinese
texts of the documents that make up the agreement and the associated Exchange of
Memoranda. These were submitted to British Ministers and Chinese leaders for
final approval. The texts were initialled by the two delegation leaders on 26
September.
Consultation with the People of Hong Kong
15. From the beginning of the negotiations Her Majesty's
Government have been conscious that the negotiations concerned the interests and
future of the five and a half million people of Hong Kong. It has been the
consistent position of Her Majesty's Government that any agreement with the
Chinese Government on the future of the territory should be acceptable to the
people of Hong Kong as well as to the British Parliament and the Chinese
Government.
16. The negotiations had to be conducted on a basis of
confidentiality. This was crucial to their success, but the maintenance of
confidentiality also caused much concern and anxiety among the people of Hong
Kong who were understandably anxious to know what was being negotiated for their
future. All members of the Executive Council, as the Governor's closest
advisers, were kept fully informed on the negotiations and consulted on a
continuing basis throughout the period. The Unofficial Members of the Executive
and Legislative Councils (UMELCO) provided invaluable advice to the Governor and
to Ministers on the course of the negotiations and on the attitude of the people
of Hong Kong.
17. At a number of crucial points in the negotiations the Governor and
Unofficial Members of the Executive Council visited London for consultations
with the Prime Minister and other Ministers. British Ministers also paid a
series of visits to Hong Kong, to consult the Governor, the Executive Council
and the Unofficial Members of the Executive and Legislative Councils and to keep
in touch with opinion in the territory. The Secretary of State for Foreign and
Commonwealth Affairs was able to describe the approach of Her Majesty's
Government to the negotiations in his statement in Hong Kong on 20 April 1984,
and to fill in more details of what might eventually be included in an agreement
in a further statement in the territory on 1 August 1984. In the course of the
negotiations, and in particular since the statement of 20 April, numerous
individuals and groups in Hong Kong have made specific proposals on what should
be included in an eventual agreement.
The Legislative Council of Hong Kong has debated aspects of the
future of the territory on a number of occasions. Her Majesty's Government have
paid close attention to these expressions of opinion which the Hong Kong
Government have relayed to Ministers, and to views about the future expressed
through a variety of channels---by and through UMELCO, through the press,
through individual communications addressed to Her Majesty's Government or the
Hong Kong Government. In this way Her Majesty's Government have sought to take
into account the views of the people of Hong Kong to the maximum extent possible
during the negotiations.
18. In the same way the maintenance of confidentiality has made the task of
consulting Parliament on the negotiations more difficult. Despite this there
were debates on Hong Kong in October and November 1983 and in May 1984, and part
of the Foreign Affairs Debate in March 1984 was also devoted to Hong Kong.
Members of Parliament have kept in close touch with the people of Hong Kong,
both through visits to the territory and through meetings with Hong Kong
delegations visiting the United Kingdom.
Introduction to the Agreement
19. The full text of the draft agreement is included in the
second part of this White Paper. It consists of a Joint Declaration and three
Annexes. Each part of the agreement has the same status. The whole makes up a
formal international agreement, legally binding in all its parts. An
international agreement of this kind is the highest form of commitment between
two sovereign states.
20. The Joint Declaration consists in part of linked
declarations by Her Majesty's Government and the Chinese Government.
In paragraph 1 the Chinese Government declares that it will
resume the exercise of sovereignty over Hong Kong on 1 July 1997. In paragraph 2
Her Majesty's Government declare that they will restore Hong Kong to the Chinese
Government from that date. In paragraph 3 the Chinese Government sets out its
policies towards Hong Kong after 30 June 1997. In paragraph 4 the two
Governments jointly declare that Her Majesty's Government will remain
responsible for the administration of Hong Kong up to 30 June 1997. Paragraphs 5
and 6 deal with the Joint Liaison Group and land. Paragraph 7 constitutes the
important link between the declarations by the two parties; it has the effect of
making the Joint Declaration and the Annexes to it legally binding in their
entirety on the two Governments. Paragraph 8 provides for the agreement to enter
into force on ratification. Ratification will take place before 30 June 1985.
21. The agreement sets out clearly the relationship between the provisions which
it contains and the future Basic Law of the Hong Kong Special Administrative
Region, to be promulgated by the National People's Congress of the People's
Republic of China. Paragraph 3(12) of the Joint Declaration provides that the
basic policies in the Joint Declaration and the elaboration of them in Annex I
will be stipulated in the Basic Law. They will remain unchanged for 50 years.
22. Annex I contains an elaboration of
Chinese policies for the Hong Kong Special Administrative Region. The Annex
deals in detail with the way Hong Kong will work after 1 July 1997, and
describes the extent of the autonomy and continuity which will prevail then. The
subjects dealt with in the various sections of this Annex are:
(I) constitutional arrangements and government structure;
(II) the laws;
(III) the judicial system;
(IV) the public service;
(V) the financial system;
(VI) the economic system and external economic relations;
(VII) the monetary system;
(VIII) shipping;
(IX) civil aviation;
(X) culture and education;
(XI) external relations;
(XII) defence, security and public order;
(XIII) rights and freedoms;
(XIV) right of abode, travel documents and immigration.
23. Annex II sets out the provisions concerning the establishment of a
Sino-British Joint Liaison Group. The Joint Liaison Group will be established on
the entry into force of the agreement and will meet in Peking, London and Hong
Kong. From 1 July 1988 it will be based in Hong Kong, although it will also
continue to meet in Peking and London. It will continue its work until 1 January
2000. The Annex includes terms of reference which clearly indicate that the
Group will be a forum for liaison only and not an organ of power. It will
neither play a part in the administration of Hong Kong nor have any supervisory
role.
24. Annex III deals with land leases. It covers leases that have
already been issued by the Hong Kong Government, leases to be issued between the
entry into force of the agreement and 1997, certain financial arrangements, and
arrangements for the establishment of a joint Land Commission.
25. Associated with the agreement is a separate Exchange of Memoranda on the
status of persons after 30 June 1997 who at present are British Dependent
Territories citizens, and related issues. The Memoranda will be formally
26. The last part of this White Paper contains further explanatory notes on the
text of the Annexes to the Joint Declaration and the Exchange of Memoranda.
Views of Her Majesty's Government on the Agreement
27. As recorded in paragraph 10 above, Her Majesty's Government
have sought to see whether on the basis of proposals put forward by the Chinese
Government arrangements could be constructed which would ensure lasting
stability and prosperity for Hong Kong. They have negotiated energetically and
they believe successfully to secure an agreement which meets the needs and
wishes of the people of Hong Kong. The negotiations have been hard and long.
Taking the agreement as a whole Her Majesty's Government are confident that it
does provide a framework in which the stability and prosperity of Hong Kong can
be maintained after 1997 as a Special Administrative Region of the People's
Republic of China.
28. The text of the agreement has been initialled by both sides.
This represents a certification by the negotiators that it represents accurately
the outcome of the negotiations. However, as is normal with international
agreements negotiated between nations there is no realistic possibility of
amending the text. The agreement must be taken as a whole.
29. Her Majesty's Government have a duty to make clear beyond any possibility of
misunderstanding the alternative to acceptance of the agreement set out in this
White Paper. In their view, there is no possibility of an amended agreement. The
alternative to acceptance of the present agreement is to have no agreement. In
this case the Chinese Government has made it plain that negotiations could not
be reopened and that it would publish its own plan for Hong Kong. There is no
guarantee that such a unilateral plan would include all the elements included in
the draft agreement, nor would it have the same status as a legally binding
agreement between the two countries.
Whether or not there is an agreement between Her Majesty's
Government and the Chinese Government the New Territories will revert to China
on 1 July 1997 under the terms of the 1898 Convention. The remainder of Hong
Kong (Hong Kong Island, Kowloon and Stonecutters Island) would not be viable
alone. Hong Kong, including the New Territories, has since 1898 become an
integral whole and Her Majesty's Government are satisfied that there is no
possibility of dividing the New Territories which revert to China on 1 July 1997
from the remainder. The choice is therefore between reversion of Hong Kong to
China under agreed, legally binding international arrangements or reversion to
China without such arrangements. This is not a choice which Her Majesty's
Government have sought to impose on the people of Hong Kong. It is a choice
imposed by the facts of Hong Kong's history.
30. Her Majesty's Government believe that the agreement is a good one. They
strongly commend it to the people of Hong Kong and to Parliament. It provides a
framework in which Hong Kong as a Special Administrative Region of the People's
Republic of China will be able to preserve its unique economic system and way of
life after 1 July 1997.
The agreement preserves Hong Kong's familiar legal system and
the body of laws in force in Hong Kong, including the common law. The agreement
gives Hong Kong a high degree of autonomy in which it will be able to administer
itself and pass its own legislation. It will enable Hong Kong to continue to
decide on its own economic, financial and trade policies, and to participate in
international organisations and trade agreements such as the General Agreement
on Tariffs and Trade (GATT). Her Majesty's Government are confident that the
agreement provides the necessary assurances about Hong Kong's future to allow
the territory to continue to flourish, and to maintain its unique role in the
world as a major trading and financial centre.
The Agreement and the People of Hong Kong
31. Her Majesty's Government have consistently stated that an
agreement on the future of Hong Kong must be acceptable to the people of Hong
Kong as well as to Parliament. In his statement on 20 April 1984 in Hong Kong
the Secretary of State for Foreign and Commonwealth Affairs stated that the
people of Hong Kong would need to have time to express their views on the
agreement, before it was debated by Parliament. The people of Hong Kong will now
have this opportunity.
32. The text of this White Paper is also being published in Hong
Kong by the Hong Kong Government and will be circulated through a wide variety
of channels in the territory. An Assessment Office has been set up in Hong Kong
under the charge of a senior official of the Hong Kong Government, directly
responsible to the Governor.
This office will provide Her Majesty's Government and
Parliament with an analysis and assessment of opinion in Hong Kong on the draft
agreement. Two monitors, Sir Patrick Nairne and Mr Justice Simon Li, have been
appointed by Her Majesty's Government to observe the work of the Assessment
Office and to report independently to the Secretary of State for Foreign and
Commonwealth Affairs on whether they are satisfied that the Assessment Office
has properly, accurately and impartially discharged its duties. In the light of
these two reports Her Majesty's Government will decide what recommendation to
make to Parliament.
Joint
Declaration of the Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the People's Republic of China on the
Question of Hong Kong - 19 December 1984
The Government of the United Kingdom of Great Britain and Northern Ireland and
the Government of the People's Republic of China have reviewed with satisfaction
the friendly relations existing between the two Governments and peoples in
recent years and agreed that a proper negotiated settlement of the question of
Hong Kong, which is left over from the past, is conducive to the maintenance of
the prosperity and stability of Hong Kong and to the further strengthening and
development of the relations between the two countries on a new basis. To this
end, they have, after talks between the delegations of the two Governments,
agreed to declare as follows:
1. The Government of the People's Republic of China declares that to recover the
Hong Kong area (including Hong Kong Island, Kowloon and the New Territories,
hereinafter referred to as Hong Kong) is the common aspiration of the entire
Chinese people, and that it has decided to resume the exercise of sovereignty
over Hong Kong with effect from 1 July 1997.
2. The Government of the United Kingdom declares that it will restore Hong Kong
to the People's Republic of China with effect from 1 July 1997.
3. The Government of the People's Republic of China declares that the basic
policies of the People's Republic of China regarding Hong Kong are as follows:
(1) Upholding national unity and territorial integrity and taking account of the
history of Hong Kong and its realities, the People's Republic of China has
decided to establish, in accordance with the provisions of Article 31 of the
Constitution of the People's Republic of China, a Hong Kong Special
Administrative Region upon resuming the exercise of sovereignty over Hong Kong.
(2) The Hong Kong Special Administrative Region will be directly under the
authority of the Central People's Government of the People's Republic of China.
The Hong Kong Special Administrative Region will enjoy a high degree of
autonomy, except in foreign and defence affairs which are the responsibilities
of the Central People's Government.
(3) The Hong Kong Special Administrative Region will be vested with executive,
legislative and independent judicial power, including that of final
adjudication. The laws currently in force in Hong Kong will remain basically
unchanged.
(4) The Government of the Hong Kong Special Administrative Region will be
composed of local inhabitants. The chief executive will be appointed by the
Central People's Government on the basis of the results of elections or
consultations to be held locally. Principal officials will be nominated by the
chief executive of the Hong Kong Special Administrative Region for appointment
by the Central People's Government. Chinese and foreign nationals previously
working in the public and police services in the government departments of Hong
Kong may remain in employment. British and other foreign nationals may also be
employed to serve as advisers or hold certain public posts in government
departments of the Hong Kong Special Administrative Region.
(5) The current social and economic systems in Hong Kong will remain unchanged,
and so will the life-style. Rights and freedoms, including those of the person,
of speech, of the press, of assembly, of association, of travel, of movement, of
correspondence, of strike, of choice of occupation, of academic research and of
religious belief will be ensured by law in the Hong Kong Special Administrative
Region. Private property, ownership of enterprises, legitimate right of
inheritance and foreign investment will be protected by law.
(6) The Hong Kong Special Administrative Region will retain the status of a free
port and a separate customs territory.
(7) The Hong Kong Special Administrative Region will retain the status of an
international financial centre, and its markets for foreign exchange, gold,
securities and futures will continue. There will be free flow of capital. The
Hong Kong dollar will continue to circulate and remain freely convertible.
(8) The Hong Kong Special Administrative Region will have independent finances.
The Central People's Government will not levy taxes on the Hong Kong Special
Administrative Region.
(9) The Hong Kong Special Administrative Region may establish mutually
beneficial economic relations with the United Kingdom and other countries, whose
economic interests in Hong Kong will be given due regard.
(10) Using the name of "Hong Kong, China", the Hong Kong Special Administrative
Region may on its own maintain and develop economic and cultural relations and
conclude relevant agreements with states, regions and relevant international
organisations. The Government of the Hong Kong Special Administrative Region may
on its own issue travel documents for entry into and exit from Hong Kong.
(11) The maintenance of public order in the Hong Kong Special Administrative
Region will be the responsibility of the Government of the Hong Kong Special
Administrative Region.
(12) The above-stated basic policies of the People's Republic of China regarding
Hong Kong and the elaboration of them in Annex I to this Joint Declaration will
be stipulated, in a Basic Law of the Hong Kong Special Administrative Region of
the People's Republic of China, by the National People's Congress of the
People's Republic of China, and they will remain unchanged for 50 years.
4. The Government of the United Kingdom and the Government of the People's
Republic of China declare that, during the transitional period between the date
of the entry into force of this Joint Declaration and 30 June 1997, the
Government of the United Kingdom will be responsible for the administration of
Hong Kong with the object of maintaining and preserving its economic prosperity
and social stability; and that the Government of the People's Republic of China
will give its cooperation in this connection.
5. The Government of the United Kingdom and the Government of the People's
Republic of China declare that, in order to ensure a smooth transfer of
government in 1997, and with a view to the effective implementation of this
Joint Declaration, a Sino-British Joint Liaison Group will be set up when this
Joint Declaration enters into force; and that it will be established and will
function in accordance with the provisions of Annex II to this Joint
Declaration.
6. The Government of the United Kingdom and the Government of the People's
Republic of China declare that land leases in Hong Kong and other related
matters will be dealt with in accordance with the provisions of Annex III to
this Joint Declaration.
7. The Government of the United Kingdom and the Government of the People's
Republic of China agree to implement the preceding declarations and the Annexes
to this Joint Declaration.
8. This Joint Declaration is subject to ratification and shall enter into force
on the date of the exchange of instruments of ratification, which shall take
place in Beijing before 30 June 1985. This Joint Declaration and its Annexes
shall be equally binding.
Done in duplicate at Beijing on 19 December 1984 in the English and Chinese
languages, both texts being equally authentic.
Annex I -
Elaboration 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 elaborates the basic policies
of the People's Republic of China regarding Hong Kong as set out in paragraph 3
of the Joint Declaration of the Government of the United Kingdom of Great
Britain and Northern Ireland and the Government of the People's Republic of
China on the Question of Hong Kong as follows:
I
The Constitution of the People's Republic of China stipulates in
Article 31 that "the state may establish special administrative regions when
necessary. The systems to be instituted in special administrative regions shall
be prescribed by laws enacted by the National People's Congress in the light of
the specific conditions. In accordance with this Article, the People's Republic
of China shall, upon the resumption of the exercise of sovereignty over Hong
Kong on 1 July 1997, establish the Hong Kong Special Administrative Region of
the People's Republic of China.
The National People's Congress of the People's Republic of
China shall enact and promulgate a Basic Law of the Hong Kong Special
Administrative Region of the People's Republic of China (hereinafter referred to
as the Basic Law) in accordance with the Constitution of the People's Republic
of China, stipulating that after the establishment of the Hong Kong Special
Administrative Region the socialist system and socialist policies shall not be
practised in the Hong Kong Special Administrative Region and that Hong Kong's
previous capitalist system and life-style shall remain unchanged for 50 years.
The Hong Kong Special Administrative Region shall be directly under the
authority of the Central People's Government of the People's Republic of China
and shall enjoy a high degree of autonomy. Except for foreign and defence
affairs which are the responsibilities of the Central People's Government, the
Hong Kong Special Administrative Region shall be vested with executive,
legislative and independent judicial power, including that of final
adjudication. The Central People's Government shall authorise the Hong Kong
Special Administrative Region to conduct on its own those external affairs
specified in Section XI of this Annex.
The government and legislature of the Hong Kong Special Administrative Region
shall be composed of local inhabitants. The chief executive of the Hong Kong
Special Administrative Region shall be selected by election or through
consultations held locally and be appointed by the Central People's Government.
Principal officials (equivalent to Secretaries) shall be nominated by the chief
executive of the Hong Kong Special Administrative Region and appointed by the
Central People's Government. The legislature of the Hong Kong Special
Administrative Region shall be constituted by elections. The executive
authorities shall abide by the law and shall be accountable to the legislature.
In addition to Chinese, English may also be used in organs of government and in
the courts in the Hong Kong Special Administrative Region.
Apart from displaying the national flag and national emblem of the People's
Republic of China, the Hong Kong Special Administrative Region may use a
regional flag and emblem of its own.
II
After the establishment of the Hong Kong Special Administrative
Region, the laws previously in force in Hong Kong (i.e. the common law, rules of
equity, ordinances, subordinate legislation and customary law) shall be
maintained, save for any that contravene the Basic Law and subject to any
amendment by the Hong Kong Special Administrative Region legislature.
The legislative power of the Hong Kong Special Administrative Region shall be
vested in the legislature of the Hong Kong Special Administrative Region. The
legislature may on its own authority enact laws in accordance with the
provisions of the Basic Law and legal procedures, and report them to the
Standing Committee of the National People's Congress for the record. Laws
enacted by the legislature which are in accordance with the Basic Law and legal
procedures shall be regarded as valid.
The laws of the Hong Kong Special Administrative Region shall be the Basic Law,
and the laws previously in force in Hong Kong and laws enacted by the Hong Kong
Special Administrative Region legislature as above.
III
After the establishment of the Hong Kong Special Administrative
Region, the judicial system previously practised in Hong Kong shall be
maintained except for those changes consequent upon the vesting in the courts of
the Hong Kong Special Administrative Region of the power of final adjudication.
Judicial power in the Hong Kong Special Administrative Region shall be vested in
the courts of the Hong Kong Special Administrative Region. The courts shall
exercise judicial power independently and free from any interference. Members of
the judiciary shall be immune from legal action in respect of their judicial
functions. The courts shall decide cases in accordance with the laws of the Hong
Kong Special Administrative Region and may refer to precedents in other common
law jurisdictions.
Judges of the Hong Kong Special Administrative Region courts shall be appointed
by the chief executive of the Hong Kong Special Administrative Region acting in
accordance with the recommendation of an independent commission composed of
legal judges, persons from the legal profession and other eminent persons.
Judges shall be chosen by reference to their judicial qualities and may be
recruited from other common law jurisdictions.
A judge may only be removed for inability to discharge the
functions of his office, or for misbehaviour, by the chief executive of the Hong
Kong Special Administrative Region acting in accordance with the recommendation
of a tribunal appointed by the chief judge of the court of final appeal,
consisting of not fewer than three local judges. Additionally, the appointment
or removal of principal judges (i.e. those of the highest rank) shall be made by
the chief executive with the endorsement of the Hong Kong Special Administrative
Region legislature and reported to the Standing Committee of the National
People's Congress for the record. The system of appointment and removal of
judicial officers other than judges shall be maintained.
The power of final judgment of the Hong Kong Special Administrative Region shall
be vested in the court of final appeal in the Hong Kong Special Administrative
Region, which may as required invite judges from other common law jurisdictions
to sit on the court of final appeal.
A prosecuting authority of the Hong Kong Special Administrative Region shall
control criminal prosecutions free from any interference.
On the basis of the system previously operating in Hong Kong, the Hong Kong
Special Administrative Region Government shall on its own make provision for
local lawyers and lawyers from outside the Hong Kong Special Administrative
Region to work and practise in the Hong Kong Special Administrative Region.
The Central People's Government shall assist or authorise the Hong Kong Special
Administrative Region Government to make appropriate arrangements for reciprocal
juridical assistance with foreign states.
IV
After the establishment of the Hong Kong Special Administrative
Region, public servants previously serving in Hong Kong in all government
departments, including the police department, and members of the judiciary may
all remain in employment and continue their service with pay, allowances,
benefits and conditions of service no less favourable than before. The Hong Kong
Special Administrative Region Government shall pay to such persons who retire or
complete their contracts, as well as to those who have retired before 1 July
1997, or to their dependants, all pensions, gratuities, allowances and benefits
due to them on terms no less favourable than before, and irrespective of their
nationality or place of residence.
The Hong Kong Special Administrative Region Government may employ British and
other foreign nationals previously serving in the public service in Hong Kong,
and may recruit British and other foreign nationals holding permanent identity
cards of the Hong Kong Special Administrative Region to serve as public servants
at all levels, except as heads of major government departments (corresponding to
branches or departments at Secretary level) including the police department, and
as deputy heads of some of those departments. The Hong Kong Special
Administrative Region Government may also employ British and other foreign
nationals as advisers to government departments and, when there is a need, may
recruit qualified candidates from outside the Hong Kong Special Administrative
Region to professional and technical posts in government departments. The above
shall be employed only in their individual capacities and, like other public
servants, shall be responsible to the Hong Kong Special Administrative Region
Government.
The appointment and promotion of public servants shall be on the basis of
qualifications, experience and ability. Hong Kong's previous system of
recruitment, employment, assessment, discipline, training and management for the
public service (including special bodies for appointment, pay and conditions of
service) shall, save for any provisions providing privileged treatment for
foreign nationals, be maintained.
V
The Hong Kong Special Administrative Region shall deal on its
own with financial matters, including disposing of its financial resources and
drawing up its budgets and its final accounts. The Hong Kong Special
Administrative Region shall report its budgets and final accounts to the Central
People's Government for the record.
The Central People's Government shall not levy taxes on the Hong Kong Special
Administrative Region. The Hong Kong Special Administrative Region shall use its
financial revenues exclusively for its own purposes and they shall not be handed
over to the Central People's Government. The systems by which taxation and
public expenditure must be approved by the legislature, and by which there is
accountability to the legislature for all public expenditure, and the system for
auditing public accounts shall be maintained.
VI
The Hong Kong Special Administrative Region shall maintain the
capitalist economic and trade systems previously practised in Hong Kong. The
Hong Kong Special Administrative Region Government shall decide its economic and
trade policies on its own. Rights concerning the ownership of property,
including those relating to acquisition, use, disposal, inheritance and
compensation for lawful deprivation (corresponding to the real value of the
property concerned, freely convertible and paid without undue delay) shall
continue to be protected by law.
The Hong Kong Special Administrative Region shall retain the status of a free
port and continue a free trade policy, including the free movement of goods and
capital. The Hong Kong Special Administrative Region may on its own maintain and
develop economic and trade relations with all states and regions.
The Hong Kong Special Administrative Region shall be a separate customs
territory. It may participate in relevant international organisations and
international trade agreements (including preferential trade arrangements), such
as the General Agreement on Tariffs and Trade and arrangements regarding
international trade in textiles. Export quotas, tariff preferences and other
similar arrangements obtained by the Hong Kong Special Administrative Region
shall be enjoyed exclusively by the Hong Kong Special Administrative Region. The
Hong Kong Special Administrative Region shall have authority to issue its own
certificates of origin for products manufactured locally, in accordance with
prevailing rules of origin.
The Hong Kong Special Administrative Region may, as necessary, establish
official and semi-official economic and trade missions in foreign countries,
reporting the establishment of such missions to the Central People's Government
for the record.
VII
The Hong Kong Special Administrative Region shall retain the
status of an international financial centre. The monetary and financial systems
previously practised in Hong Kong, including the systems of regulation and
supervision of deposit taking institutions and financial markets, shall be
maintained.
The Hong Kong Special Administrative Region Government may decide its monetary
and financial policies on its own. It shall safeguard the free operation of
financial business and the free flow of capital within, into and out of the Hong
Kong Special Administrative Region. No exchange control policy shall be applied
in the Hong Kong Special Administrative Region. Markets for foreign exchange,
gold, securities and futures shall continue.
The Hong Kong dollar, as the local legal tender, shall continue to circulate and
remain freely convertible. The authority to issue Hong Kong currency shall be
vested in the Hong Kong Special Administrative Region Government. The Hong Kong
Special Administrative Region Government may authorise designated banks to issue
or continue to issue Hong Kong currency under statutory authority, after
satisfying itself that any issue of currency will be soundly based and that the
arrangements for such issue are consistent with the object of maintaining the
stability of the currency. Hong Kong currency bearing references inappropriate
to the status of Hong Kong as a Special Administrative Region of the People's
Republic of China shall be progressively replaced and withdrawn from
circulation.
The Exchange Fund shall be managed and controlled by the Hong Kong Special
Administrative Region Government, primarily for regulating the exchange value of
the Hong Kong dollar.
VIII
The Hong Kong Special Administrative Region shall maintain Hong
Kong's previous systems of shipping management and shipping regulation,
including the system for regulating conditions of seamen. The specific functions
and responsibilities of the Hong Kong Special Administrative Region Government
in the field of shipping shall be defined by the Hong Kong Special
Administrative Region Government on its own. Private shipping businesses and
shipping-related businesses and private container terminals in Hong Kong may
continue to operate freely.
The Hong Kong Special Administrative Region shall be authorised by the Central
People's Government to continue to maintain a shipping register and issue
related certificates under its own legislation in the name of "Hong Kong,
China".
With the exception of foreign warships, access for which requires the permission
of the Central People's Government, ships shall enjoy access to the ports of the
Hong Kong Special Administrative Region in accordance with the laws of the Hong
Kong Special Administrative Region.
IX
The Hong Kong Special Administrative Region shall maintain the
status of Hong Kong as a centre of international and regional aviation. Airlines
incorporated and having their principal place of business in Hong Kong and civil
aviation related businesses may continue to operate. The Hong Kong Special
Administrative Region shall continue the previous system of civil aviation
management in Hong Kong, and keep its own aircraft register in accordance with
provisions laid down by the Central People's Government concerning nationality
marks and registration marks of aircraft. The Hong Kong Special Administrative
Region shall be responsible on its own for matters of routine business and
technical management of civil aviation, including the management of airports,
the provision of air traffic services within the flight information region of
the Hong Kong Special Administrative Region, and the discharge of other
responsibilities allocated under the regional air navigation procedures of the
International Civil Aviation Organisation.
The Central People's Government shall, in consultation with the Hong Kong
Special Administrative Region Government, make arrangements providing for air
services between the Hong Kong Special Administrative Region and other parts of
the People's Republic of China for airlines incorporated and having their
principal place of business in the Hong Kong Special Administrative Region and
other airlines of the People's Republic of China. All Air Service Agreements
providing for air services between other parts of the People's Republic of China
and other states and regions with stops at the Hong Kong Special Administrative
Region and air services between the Hong Kong Special Administrative Region and
other states and regions with stops at other parts of the People's Republic of
China shall be concluded by the Central People's Government. For this purpose,
the Central People's Government shall take account of the special conditions and
economic interests of the Hong Kong Special Administrative Region and consult
the Hong Kong Special Administrative Region Government. Representatives of the
Hong Kong Special Administrative Region Government may participate as members of
delegations of the Government of the People's Republic of China in air service
consultations with foreign governments concerning arrangements for such
services.
Acting under specific authorisations from the Central People's Government, the
Hong Kong Special Administrative Region Government may:
renew or amend Air Service Agreements and arrangements
previously in force; in principle, all such Agreements and arrangements may
be renewed or amended with the rights contained in such previous Agreements
and arrangements being as far as possible maintained;
negotiate and conclude new Air Service Agreements providing routes for
airlines incorporated and having their principal place of business in the
Hong Kong Special Administrative Region and rights for overflights and
technical stops; and
negotiate and conclude provisional arrangements where no Air Service Agreement
with a foreign state or other region is in force.
All scheduled air services to, from or through the Hong Kong
Special Administrative Region which do not operate to, from or through the
mainland of China shall be regulated by Air Service Agreements or provisional
arrangements referred to in this paragraph.
The Central People's Government shall give the Hong Kong Special
Administrative Region Government the authority to:
negotiate and conclude with other authorities all arrangements
concerning the implementation of the above Air Service Agreements and
provisional arrangements;
issue licences to airlines incorporated and having their principal place of
business in the Hong Kong Special Administrative Region;
designate such airlines under the above Air Service Agreements and provisional
arrangements; and
issue permits to foreign airlines for services other than those to, from or
through the mainland of China.
X
The Hong Kong Special Administrative Region shall maintain the
educational system previously practised in Hong Kong. The Hong Kong Special
Administrative Region Government shall on its own decide policies in the fields
of culture, education, science and technology, including policies regarding the
educational system and its administration, the language of instruction, the
allocation of funds, the examination system, the system of academic awards and
the recognition of educational and technological qualifications. Institutions of
all kinds, including those run by religious and community organisations, may
retain their autonomy. They may continue to recruit staff and use teaching
materials from outside the Hong Kong Special Administrative Region. Students
shall enjoy freedom of choice of education and freedom to pursue their education
outside the Hong Kong Special Administrative Region.
XI
Subject to the principle that foreign affairs are the
responsibility of the Central People's Government, representatives of the Hong
Kong Special Administrative Region Government may participate, as members of
delegations of the Government of the People's Republic of China, in negotiations
at the diplomatic level directly affecting the Hong Kong Special Administrative
Region conducted by the Central People's Government. The Hong Kong Special
Administrative Region may on its own, using the name "Hong Kong, China",
maintain and develop relations and conclude and implement agreements with
states, regions and relevant international organisations in the appropriate
fields, including the economic, trade, financial and monetary, shipping,
communications, touristic, cultural and sporting fields.
Representatives of the Hong Kong Special Administrative Region
Government may participate, as members of delegations of the Government of the
People's Republic of China, in international organisations or conferences in
appropriate fields limited to states and affecting the Hong Kong Special
Administrative Region, or may attend in such other capacity as may be permitted
by the Central People's Government and the organisation or conference concerned,
and may express their views in the name of "Hong Kong, China". The Hong Kong
Special Administrative Region may, using the name "Hong Kong, China",
participate in international organisations and conferences not limited to
states.
The application to the Hong Kong Special Administrative Region of international
agreements to which the People's Republic of China is or becomes a party shall
be decided by the Central People's Government, in accordance with the
circumstances and needs of the Hong Kong Special Administrative Region, and
after seeking the views of the Hong Kong Special Administrative Region
Government. International agreements to which the People's Republic of China is
not a party but which are implemented in Hong Kong may remain implemented in the
Hong Kong Special Administrative Region.
The Central People's Government shall, as necessary, authorise
or assist the Hong Kong Special Administrative Region Government to make
appropriate arrangements for the application to the Hong Kong Special
Administrative Region of other relevant international agreements. The Central
People's Government shall take the necessary steps to ensure that the Hong Kong
Special Administrative Region shall continue to retain its status in an
appropriate capacity in those international organisations of which the People's
Republic of China is a member and in which Hong Kong participates in one
capacity or another. The Central People's Government shall, where necessary,
facilitate the continued participation of the Hong Kong Special Administrative
Region in an appropriate capacity in those international organisations in which
Hong Kong is a participant in one capacity or another, but of which the People's
Republic of China is not a member.
Foreign consular and other official or semi-official missions may be established
in the Hong Kong Special Administrative Region with the approval of the Central
People's Government. Consular and other official missions established in Hong
Kong by states which have established formal diplomatic relations with the
People's Republic of China may be maintained. According to the circumstances of
each case, consular and other official missions of states having no formal
diplomatic relations with the People's Republic of China may either be
maintained or changed to semi-official missions. States not recognised by the
People's Republic of China can only establish non-governmental institutions.
The United Kingdom may establish a Consulate-General in the Hong Kong Special
Administrative Region.
XII
The maintenance of public order in the Hong Kong Special
Administrative Region shall be the responsibility of the Hong Kong Special
Administrative Region Government. Military forces sent by the Central People's
Government to be stationed in the Hong Kong Special Administrative Region for
the purpose of defence shall not interfere in the internal affairs of the Hong
Kong Special Administrative Region. Expenditure for these military forces shall
be borne by the Central People's Government.
XIII
The Hong Kong Special Administrative Region Government shall
protect the rights and freedoms of inhabitants and other persons in the Hong
Kong Special Administrative Region according to law. The Hong Kong Special
Administrative Region Government shall maintain the rights and freedoms as
provided for by the laws previously in force in Hong Kong, including freedom of
the person, of speech, of the press, of assembly, of association, to form and
join trade unions, of correspondence, of travel, of movement, of strike, of
demonstration, of choice of occupation, of academic research, of belief,
inviolability of the home, the freedom to marry and the right to raise a family
freely.
Every person shall have the right to confidential legal advice, access to the
courts, representation in the courts by lawyers of his choice, and to obtain
judicial remedies. Every person shall have the right to challenge the actions of
the executive in the courts.
Religious organisations and believers may maintain their relations with
religious organisations and believers elsewhere, and schools, hospitals and
welfare institutions run by religious organisations may be continued. The
relationship between religious organisations in the Hong Kong Special
Administrative Region and those in other parts of the People's Republic of China
shall be based on the principles of non-subordination, non-interference and
mutual respect.
The provisions of the International Covenant on Civil and Political Rights and
the International Covenant on Economic, Social and Cultural Rights as applied to
Hong Kong shall remain in force.
XIV
The following categories of persons shall have the right of
abode in the Hong Kong Special Administrative Region, and, in accordance with
the law of the Hong Kong Special Administrative Region, be qualified to obtain
permanent identity cards issued by the Hong Kong Special Administrative Region
Government, which state their right of abode:
all Chinese nationals who were born or who have ordinarily resided in Hong Kong
before or after the establishment of the Hong Kong Special Administrative Region
for a continuous period of 7 years or more, and persons of Chinese nationality
born outside Hong Kong of such Chinese nationals;
all other persons who have ordinarily resided in Hong Kong before or after the
establishment of the Hong Kong Special Administrative Region for a continuous
period of 7 years or more and who have taken Hong Kong as their place of
permanent residence before or after the establishment of the Hong Kong Special
Administrative Region, and persons under 21 years of age who were born of such
persons in Hong Kong before or after the establishment of the Hong Kong Special
Administrative Region;
any other persons who had the right of abode only in Hong Kong before the
establishment of the Hong Kong Special Administrative Region.
The Central People's Government shall authorise the Hong Kong
Special Administrative Region Government to issue, in accordance with the law,
passports of the Hong Kong Special Administrative Region of the People's
Republic of China to all Chinese nationals who hold permanent identity cards of
the Hong Kong Special Administrative Region, and travel documents of the Hong
Kong Special Administrative Region of the People's Republic of China to all
other persons lawfully residing in the Hong Kong Special Administrative Region.
The above passports and documents shall be valid for all states and regions and
shall record the holder's right to return to the Hong Kong Special
Administrative Region.
For the purpose of travelling to and from the Hong Kong Special Administrative
Region, residents of the Hong Kong Special Administrative Region may use travel
documents issued by the Hong Kong Special Administrative Region Government, or
by other competent authorities of the People's Republic of China, or of other
states. Holders of permanent identity cards of the Hong Kong Special
Administrative Region may have this fact stated in their travel documents as
evidence that the holders have the right of abode in the Hong Kong Special
Administrative Region.
Entry into the Hong Kong Special Administrative Region of persons from other
parts of China shall continue to be regulated in accordance with the present
practice.
The Hong Kong Special Administrative Region Government may apply immigration
controls on entry, stay in and departure from the Hong Kong Special
Administrative Region by persons from foreign states and regions.
Unless restrained by law, holders of valid travel documents shall be free to
leave the Hong Kong Special Administrative Region without special
authorisation.
The Central People's Government shall assist or authorise the Hong Kong Special
Administrative Region Government to conclude visa abolition agreements with
states or regions.
Hongkong Government
Explanatory Notes on Annex I
Introduction
1. The following notes are intended to explain the material in
the Annexes to the Joint Declaration and in the associated Exchange of
Memoranda. They do not seek to be a comprehensive guide and do not include every
point in the texts. They are designed to explain in simple terms, and to
illustrate where appropriate, how the Annexes provide for the continuation of
the essentials of Hong Kong's systems. Hong Kong is a highly developed
industrial, commercial and financial centre and as such is a complex place. The
Hong Kong Government, in consultation with Her Majesty's Government, are taking
steps to ensure that further guidance and answers to detailed questions will be
provided as may be necessary and appropriate.
Annex I: Elaboration by the Government of the People's Republic of China of its
Basic Policies regarding Hong Kong
Section I. Constitutional Arrangements and Government Structure
2. When the People's Republic of China resumes the exercise of
sovereignty over Hong Kong on 1 July 1997, Hong Kong will become a Special
Administrative Region (SAR) of the People's Republic of China with a high degree
of autonomy. A Basic Law to be enacted by the National People's Congress of the
People's Republic of China will become the constitutional instrument for the
Hong Kong SAR. The Letters Patent and the Royal Instructions, which have
hitherto performed this function, will be revoked. As paragraph 3(12) of the
Joint Declaration makes clear, the basic policies of the People's Republic of
China as set out in the Joint Declaration and elaborated in this Annex will all
be stipulated in the Basic Law.
3. This section of the Annex makes clear the important point that the Basic Law
will stipulate that the socialist system and socialist policies practised in the
rest of the People's Republic of China will not be extended to the Hong Kong SAR
and that Hong Kong's capitalist system and lifestyle will remain unchanged for
50 years after the establishment of the SAR.
4. The Annex also states that, except in relation to foreign and defence
affairs, which are now the overall responsibility of Her Majesty's Government,
and will with effect from 1 July 1997 become the overall responsibility of the
Central People's Government of the People's Republic of China, the Hong Kong SAR
will enjoy a high degree of autonomy, including executive, legislative and
independent judicial power. The SAR will also have authority to conduct its own
external affairs in appropriate areas (including those relating to economic,
trade, financial and monetary, shipping, communications, touristic, cultural and
sporting matters) as amplified in section XI of this Annex, which deals with
external relations. The SAR will enjoy a significant degree of autonomy in the
maintenance and development of its air transport system as set out in section IX
of this Annex, which deals with civil aviation.
5. The section of the Annex which deals with constitutional arrangements and
government structure provides that the Hong Kong SAR will be under the direct
authority of the Central People's Government. The SAR will therefore not be
under the authority of any provincial Government.
6. This section of the Annex lays down the main elements of the structure of
government in the Hong Kong SAR. It also states that the Government and
legislature of the SAR will be composed of local inhabitants. The chief
executive will be selected by election or through consultations held locally and
be appointed by the Central People's Government. Officials of the rank
equivalent to Secretaries will be nominated by the chief executive and appointed
by the Central People's Government. The legislature will be elected.
7. Furthermore the Annex indicates that the executive authorities will be
required to act in accordance with the law and will be accountable to the
legislature; that both Chinese and English languages may be used in government
and in the courts; and that, apart from the national flag and national emblem of
the People's Republic of China, the SAR may use a regional flag and emblem of
its own.
Section II: The Laws
8. This section of the Annex, which describes how the Hong Kong SAR will have
its own system of laws, provides continuity of Hong Kong law beyond 1997. The
law of the SAR will include the common law and laws passed by the legislature of
the SAR. It will remain, as now, capable of adapting to changing conditions and
will be free to take account of developments in the common law elsewhere. That
this is so is reinforced by specific provisions in section III of this Annex
providing that the courts of the SAR will be able to refer to precedents in
other common law jurisdictions, that judges of the SAR may be recruited from
other common law jurisdictions and that the SAR's court of final appeal may
invite judges from other common law jurisdictions to sit on it.
9. Hong Kong laws and those enacted after 1 July 1997 by the legislature of the
Hong Kong SAR will be valid unless they contravene the Basic Law. The policies
stated in the Joint Declaration and in this Annex will be stipulated in the
Basic Law.
10. Laws enacted in the Hong Kong SAR will, as now, have to be passed by the
legislature, or under its authority in the form of delegated legislation. Such
laws may amend the laws of Hong Kong carried over in 1997 so long as the
provisions of the Basic Law are not transgressed. After enactment, laws will
have to be reported to the Standing Committee of the National People's Congress
of the People's Republic of China for the record.
Section III: The Judicial System
11. The courts of Hong Kong consist of the Supreme Court, the District Courts,
the Magistrates' Courts, and various statutory tribunals. The courts are at the
heart of Hong Kong's legal system, which plays an important role in maintaining
the stability and prosperity of Hong Kong. The Annex contains the very important
provision for continuity of the judicial system.
12. The Annex indicates that the main change in the judicial system which will
take place is the abolition of the system of appeal to the Privy Council and the
substitution of arrangements for the final adjudication of disputes by a court
of the Hong Kong SAR.
13. The independent exercise of judicial power and the obligation of the courts
to decide cases in accordance with the law are both provided for in this section
of the Annex. It also provides that the appointment of judges in the Hong Kong
SAR will be subject to the recommendation of an independent commission similar
to the existing Judicial Service Commission. The independence of the judiciary
is protected by the provisions that judges of the SAR may only be removed from
office on the grounds of inability or misbehaviour, and then only on the
recommendation of a tribunal of judges of the SAR.
14. The Annex provides that the essentials of the system of appointment and
removal of judges will remain unchanged, but the appointment and removal of
judges of the highest rank will require the endorsement of the legislature of
the Hong Kong SAR and have to be reported for the record to the Standing
Committee of the National People's Congress.
15. At present the decision whether or not to prosecute in any particular case
is the responsibility of the Attorney General. That responsibility is exercised
independently free from government interference. The Annex provides that the
responsibility will continue to be exercised in the SAR in the same independent
way.
16. The Annex provides that local lawyers and also lawyers from outside Hong
Kong, who contribute greatly both to the strength of the present legal system
and to the success of Hong Kong as a commercial and financial centre, will
continue to be able to practise law in Hong Kong. Provision is also made to
enable arrangements to be continued whereby, for example, judgments obtained in
Hong Kong may be enforced in foreign states, and evidence may be obtained
overseas for use in proceedings in Hong Kong.
Section IV. The Public Service
17. This section of the Annex provides for the continuation in Hong Kong of an
impartial, stable and effective public service. This is an essential factor in
ensuring Hong Kong's future stability and prosperity.
18. Under the provisions of this section of the Annex serving officers will be
able to continue in employment with the Hong Kong SAR Government on terms and
conditions, including pay and pensions, no less favourable than before 1 July
1997. Special commissions dealing with pay and conditions of service will be
retained. In addition, appointments and promotions will be made on the
recommendations of a public service commission and on the basis of
qualifications, experience and ability.
19. The Annex states that the Hong Kong SAR may employ foreign nationals in a
number of capacities, namely as public officers (except at the highest levels),
as advisers and in professional and technical posts.
20. It is explicitly provided that all pensions and other benefits due to those
officers leaving the public service before or after 1 July 1997 or to their
dependants will be paid by the Hong Kong SAR Government.
Section V. The Financial System
21. This section of the Annex provides for continuity in that the Government of
the Hong Kong SAR will determine its own fiscal policy and manage and dispose of
its financial resources, in accordance with Hong Kong's own needs. There will be
no requirement to remit revenue to the Central People's Government. The Annex
also makes clear that the predominant authority of the legislature in financial
matters, and the system for independent and impartial audit of public accounts,
will continue unchanged.
Section VI. The Economic System and External Economic Relations
22. The Annex deals together with these two subjects, which are both important
for Hong Kong's export-oriented economy. Hong Kong's prosperity is heavily
dependent on securing continued access to its principal export markets in the
developed world. This section of the Annex provides reassurance both to the
community at large in Hong Kong and to its trading partners that the basis for
Hong Kong's flourishing free market economy will continue. It also ensures that
Hong Kong's distinct position within the international trading community, on the
basis of which Hong Kong enjoys its present rights of access, will continue.
23. The Annex provides for:
(a) Hong Kong's right to continue to determine its economic policies, including
trade policy, in accordance with its own needs;
(b) the continuation of the free enterprise system, the free trade policies and
the free port, which are the essentials of Hong Kong's consistent and successful
economic policies;
(c) the continuation of individual rights and freedoms in economic matters,
notably the freedoms of choice of occupation, of travel and of movement of
capital, and the rights of individuals and companies to own and dispose of
property.
All these essential requirements are met in this section of the Annex, read in
conjunction with the appropriate paragraphs of section XIII, which deals with
rights and freedoms. The right of the future Hong Kong SAR to decide its own
economic policies is an essential part of the "one country, two systems"
concept.
24. Hong Kong's participation in the General Agreement on
Tariffs and Trade (GATT), through which it enjoys most favoured nation treatment
in its major markets, has been an important element in its success as an
exporter. Even in textiles and clothing, where the free trade principles of the
GATT have been modified by the Multi-Fibre Arrangement (MFA) which is a
negotiated derogation from the normal GATT rules, Hong Kong is able to develop
its trade within the MFA and the bilateral agreements negotiated under its
provisions. What is even more important, Hong Kong plays an active role in the
GATT and the MFA. The continuation of Hong Kong's participation in the GATT and
the MFA (if the latter is extended beyond 1986, in which year it expires) is,
therefore, of prime importance: and that too is provided in this section of the
Annex.
Section VII: The Monetary System
25. A freely convertible currency and the right to manage the
Exchange Fund, which provides the backing for the note issue and is used to
regulate the exchange value of the currency, are the essential elements of Hong
Kong's monetary system. This section of the Annex clearly stipulates that these
essential elements shall be maintained.
26. This section of the Annex also provides for the continuation of the
arrangements by which currency is issued locally by designated banks under
statutory authority.
27. The changes to the designs of bank notes and coins provided for in this
section are a logical consequence of the fact that Hong Kong will become a
Special Administrative Region of the People's Republic of China on 1 July 1997.
Section VIII: Shipping
28. A major factor in Hong Kong's trading success is its well-developed deep
water port and the capacity to handle cargoes by up to date methods. Hong Kong's
position as a major shipping centre will be preserved by this section of the
Annex, which provides that systems of shipping management and shipping
regulation will continue. Private shipping businesses and shipping-related
businesses, including container terminals, may continue to operate freely.
29. The Annex states that the Hong Kong SAR will have its own shipping register
and will issue certificates in the name of "Hong Kong, China".
30. The Annex also provides that merchant shipping will have free access to the
ports of Hong Kong under the laws of the SAR.
Section IX: Civil Aviation
31. This section of the Annex makes clear that Hong Kong will continue as a
major centre of regional and international air services, and that airlines and
civil aviation related businesses will be able to continue operating.
32. Under the provisions of the Annex the Central People's Government of the
People's Republic of China will negotiate agreements concerning air services
from and to other points in China through the Hong Kong SAR. However there is
also a provision that in dealing with such arrangements the Central People's
Government will consult the SAR Government, take its interests into account and
include its representatives in delegations to air service consultations with
foreign governments. By virtue of section XI of the Annex, which deals with
external relations, such representatives may also be included in delegations to
appropriate international organisations. The Central People's Government will
also consult the Hong Kong SAR Government about arrangements for air services
between the SAR and other parts of China.
33. It is clearly provided that all scheduled air services touching the Hong
Kong SAR which do not touch the mainland of China will be regulated by separate
arrangements concluded by the SAR Government. For this purpose the SAR
Government will be given specific authorisations from the Central People's
Government to negotiate with foreign states and regions its own bilateral
arrangements regulating air services. These will as far as possible maintain the
rights previously enjoyed by Hong Kong. The SAR Government will also act under a
general authority from the Central People's Government in negotiating all
matters concerning the implementation of such bilateral arrangements and will
issue its own operating permits for air services provided under these
arrangements. The Annex also states that the SAR will have the authority to
license local airlines, to keep its own aircraft register, to conduct the
technical supervision of civil aviation and to manage airports in the SAR. In
addition the general provisions in section 11 of the Annex, which deals with the
laws of the SAR, provide for continuity of previously existing civil aviation
laws beyond 1997.
34. Hong Kong's civil aviation industry will thus be able to continue to make an
important contribution to the effective functioning of Hong Kong's economy in
terms of servicing the needs of both business and tourism.
Section X: Culture and Education
35. This section of the Annex makes clear that Hong Kong's own system of
education will be continued and that it will operate separately and differently
from that in other parts of China. Although most of the funds for education in
Hong Kong are provided by the Government, many educational institutes were
founded and are run by community and religious organisations. Explicit provision
is made for this system to be maintained.
36. This section also provides for continuity in the application of present
educational standards, in the use of teaching materials from overseas and in the
freedom to pursue education outside Hong Kong. It therefore provides a sound
basis for Hong Kong to continue to develop an educational system which will
ensure that the population will have the skills and expertise required to enable
Hong Kong to maintain and improve its position in the fiercely competitive
economic and trading environment within which Hong Kong operates.
37. Hong Kong has come to enjoy a varied cultural and intellectual life. This
and other sections of the Annex provide for the present unique mix of cultural
and intellectual influences to continue. Provision is made in section XI of the
Annex, which deals with external relations, for Hong Kong to continue to
participate in international sporting events.
Section XI: External Relations
38. This section of the Annex provides that, subject to the principle that
foreign affairs are the responsibility of the Central People's Government, the
Hong Kong SAR will manage on its own certain aspects of its external relations,
in particular those in the economic field. This is particularly important, since
Hong Kong's access to its principal overseas markets in the industrialised
world, which is crucial to Hong Kong's industry, depends upon recognition of the
separate nature of these interests.
39. In keeping with the general provisions for Hong Kong to be a Special
Administrative Region under Chinese sovereignty, overall responsibility for
foreign affairs will lie with the Central People's Government, just as overall
responsibility for these matters at present lies with Her Majesty's Government
in the United Kingdom. At the same time the Hong Kong SAR will be able, under
the provisions of this section of the Annex, to look after its own particular
interests in certain areas by virtue of the power to be given to it to conclude
agreements in appropriate fields and to be represented in the delegation of the
People's Republic of China at negotiations of direct concern to Hong Kong.
40. The detailed method by which the provisions of the second paragraph of this
section of the Annex, which deals with the application to the Hong Kong SAR of
international agreements, will be implemented will have to be worked out during
the transitional period and will be one of the matters to be considered by the
Joint Liaison Group. There is a very large number of international agreements
which apply to Hong Kong and whose continued application following the
establishment of the Hong Kong SAR will need to be secured. This will require
consultation with third countries.
41. The Annex provides for continuity of representation by all foreign states
and organisations currently represented in Hong Kong, subject to the approval of
the Central People's Government. Changes to the status of such missions may be
required in order to take account of the existence or otherwise of formal
relations between the People's Republic of China and a particular state. The
United Kingdom will be represented in Hong Kong by a Consul-General after 1 July
1997.
Section XII: Defence, Security and Public Order
42. With the establishment of the Hong Kong SAR, the British garrison will be
withdrawn and the Central People's Government of the People's Republic of China
will be responsible for the SAR's defence. This section of the Annex makes clear
that the maintenance of public order in the SAR will be the SAR Government's
responsibility. It is also stated that military forces sent by the Central
People's Government to be stationed in the SAR for the purpose of defence will
not interfere in its internal affairs, and that expenditure for these military
forces will be borne by the Central People's Government.
Section XIII: Rights and Freedoms
43. This section of the Annex explains that basic rights and freedoms will be
protected in the Hong Kong SAR. It covers this important subject without an
extended description of the rights and freedoms concerned by providing:
(a) that the rights and freedoms previously enjoyed under the
laws of Hong Kong will be maintained by the SAR Government; and
(b) that the provisions of the International Covenants on Civil and Political
Rights and on Economic, Social and Cultural Rights, as they apply to Hong Kong,
will continue to apply to the Hong Kong SAR.
44. It is thus made clear that persons in the Hong Kong SAR will
enjoy the same protection of the law against infringements of their basic rights
as they did before the establishment of the SAR.
45. While not restricting the range of rights and freedoms the text mentions
specifically some of the more important rights and freedoms presently enjoyed
under the law.
46. The Covenants are too lengthy to reproduce here but they are public
documents. They apply to Hong Kong, with certain reservations, and, in
accordance with this section of the Annex, will continue to do so after 30 June
1997. The Covenants were drafted by the United Nations Human Rights Commission
and adopted by the United Nations General Assembly, and entered into force in
1976. They state a general consensus of nations on basic rights and identify in
detail specific human rights and freedoms: including the right to work, to an
adequate standard of living, to life and liberty, and freedom of expression,
conscience, religion and association.
47. The reservations entered by the United Kingdom in respect of the application
of the Covenants to Hong Kong, which are also public, took account of the
realities of the social and economic conditions in Hong Kong: for example, in
relation to Hong Kong the United Kingdom made reservations relating to
immigration and to the deportation of aliens.
Section XIV: Right of Abode, Travel Documents and Immigration
48. This section concerns the right of abode in the Hong Kong SAR, the travel
documents to be used by residents of the SAR, and immigration matters. It
provides for a high degree of continuity in these areas consistent with the
change in Hong Kong's status on 1 July 1997.
49. The first paragraph defines the categories of people who will have the right
of abode (including the right to enter, re-enter, live and work) in the Hong
Kong SAR. These include:
(a) Chinese nationals who were born in Hong Kong or have lived there
continuously for at least 7 years;
(b) Chinese nationals born outside Hong Kong to Chinese nationals who have the
right of abode in Hong Kong;
(c) all non-Chinese nationals who have lived in Hong Kong continuously for at
least 7 years and who have taken it as their place of permanent residence; and
(d) any others who had the right of abode only in Hong Kong before 1 July 1997.
Non-Chinese nationals born in Hong Kong to parents who have the right of abode
there also have the right of abode but will retain it after the age of 21 only
if they have met the requirements of seven years' residence and of taking Hong
Kong as their place of permanent residence. The SAR Government will issue
permanent identity cards to all those with the right of abode in the SAR. These
cards will state the holder's right of abode.
50. This section of the Annex states that Chinese nationals who
have the right of abode in the Hong Kong SAR will be eligible for passports
issued by the SAR Government. Other persons who have the right of abode, or are
otherwise lawfully resident, in the SAR will be eligible for other travel
documents issued by the SAR Government. Both these categories of persons may
also use travel documents issued by the competent authorities of the People's
Republic of China or by other governments to travel to and from the SAR: these
include passports issued by the United Kingdom (see paragraphs 63 to 64 below).
51. The Annex makes clear that the right to leave the Hong Kong SAR for any
purpose, e.g. business, study or emigration, will be maintained subject to the
normal exceptions under the law. To facilitate entry by SAR residents into third
countries, all travel documents issued to them will either include a reference
to their right to return to the SAR or refer to the fact that they hold a
permanent identity card as evidence of their right of abode in the SAR. The SAR
Government will be assisted or authorised by the Central People's Government to
conclude agreements with states or regions which provide for the mutual
abolition of visa requirements.
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