systems" concept, elaborated in October 1984 by Deng Xiaoping in Liaowang. Deng said: "The main system in China must be socialism .... The socialist system practised by one billion people on the mainland will not be changed, but a ca pitalist system will be 4allowed to exist in .certain regions, such as Hong Kong and Taiwan." The highly important Annex I detail7s how Hong Kong will work after the resumption of Chinese sovereignty and describes the extent of its autonomy. The subjects d ealt with include: constitutional arrangements and government structure; the laws; judicial system; public service; financial system; economic system and external economic relations; monetary system; shipping; civil aviation; culture and education; extern al relations; defense, security, and public order; rights and freedoms; and right of abode, travel documents, and immigration.
2. "The Constitution of the People's Republic of China," in Pcogle's Republic of China Year Book. 1985 (Beijing: Xinhua Publishing House, November 1985), p. 12.
3. Xhongauo Xinwen She, November 28, 1982, in FBIS-China, November 30, 1982, p. K19.
4. Deng's remarks can be found in Appendix 11 of Li Jiaquan, "Formula for China's Reunification," Befling Review, February 3, 1986, pp. 25-26.3
Annex II sets out the provisions for the establishment of the Sino-British Joint Liaison Group. Annex III deals with land leases and arranges for the establishment of a joint Land Commmission. The Exchange of Memoranda deals with citizenship and passport status of persons who are now British Dependent Territories citizens.
Although the recovery of sovereignty over Hong Kong is itself a significant historical step for China, the "one country, two systems" formul a applied to Hong Kong as a special administrative region with a high degree of autonomy is designed with two additional purposes: first, to maintain the prosperity and stability of Hong Kong; and second, to serve as a model for the reunification of the m ainland and Taiwan. As such, it is important to note the range of promises made by Beijing to the people of Hong-Kong. These include:
\u239\'95 A high degree of autonomy, except in foreign and defense affairs, which will be the responsibility of Beijing.
\u239\'95 An executive, legislative, and independent judicial power with the current laws remaining "basically unchanged."
\u239\'95 An executive appointed by Beijing on the basis of local elections or consultations, and "accountable to the legislature."
\u239\'95 A legislature constit uted by elections,, which "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's People's Congress for the record.',
\u239\'95 "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."
\u239\'95 Laws previously in force in Hong Kong "shall be maintained, save for any that contravene the Basic Law and subject to any amendment by the Hong Kong Special Administrative Region legislature."
\u239\'95 Judicial power in Hong Kong "shall be vested in the courts of the Hong Kong Special Administrative Region. The courts shall exerc ise judicial power independently and free from any interference .... The power of final judgement ... shall be vested in the court of final appeals in the Hong Kong Special Administrative Region."
\u239\'95 "The Hong Kong Special Administrative Region shall maint ain the capitalist economic and trade systems previously practised in Hong Kong .... The Hong Kong special Administrative Region shall retain the status of a free port and continue a free trade4
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."
\u239\'95 "The current social and economic systems in Hong Kong will remain unchanged, and so will the life-style.';Rights