DECISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS (SCNPC) ON HANDLING THE EXISTING LAW OF HONG KONG ACCORDING TO THE PROVISIONS OF ARTICLE 160 OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION (HKSAR) OF PRC BASIC LAW

Based on the above provisions, the 24th meeting of the Standing Committee of the 8th National People’s Congress examined the proposals
by the Preparatory Committee for the Establishment of HKSAR on the handling of the existing laws of Hong Kong and take the following
decisions:

1. The existing laws of Hong Kong, including the common law, rules of equity, ordinances, subordinate legislation and customary law
shall be made laws of HKSAR except for those that contravene the Basic Law.

2. The existing ordinances and subordinate legislation listed in Appendix 1 shall not be adopted as the laws of HKSAR as contravene
the Basic Law.

3. Part of articles of the existing ordinances and subordinate legislation listed in Appendix 2 shall not be adopted as the laws
of HKSAR as contravene the Basic Law.

4. Necessary alterations, adaptations, restrictions or making exceptions shall be made to the existing laws that have been adopted
as the laws of HKSAR starting from July 1, 1997 so that they will conform to the status of Hong Kong after PRC has resumed the exercise
of sovereignty over Hong Kong and the relevant provisions of the Basic Law, such as the “Ordinance on Land of the New Territory (immunities)”
which should conform to the above principle in application.

Apart from the above principles, the following amendment shall be made with the existing ordinances or subordinate legislation:

(1) If the laws concerning foreign affairs related to HKSAR are not consistent with the national laws implemented by HKSAR, the national
law shall prevail and the laws shall tally with the international rights and obligations of the Central People’s Government.

(2) Any provisions granting privileges to Britain or other Commonwealth countries will not be retained, except where they are stipulated
on the basis of mutual benefits.

(3) Provisions on the rights, immunities and duties of the British troops stationed in Hong Kong will apply to the Chinese People’s
Liberation Army stationed in Hong Kong if they do not contravene the provisions of the Basic Law and the Law of HKSAR on Army Stationed
in Hong Kong.

(4) Where English is accorded higher legal status than Chinese, both shall be treated as official languages.

(5) Stipulations under the British Laws referred to in existing provisions can be adopted as an interim arrangement before HKSAR has
made any amendment provided they do not damage China’s sovereignty or contravene the Basic Law.

5. Under the conditions provided for in 4, the interpretation or application of the terms and expressions of the existing laws adopted
as the laws of HKSAR shall observe the substitution principle provided for in Appendix 3 of this decision, except they have other
meanings.

6. The existing laws adopted as the laws of HKSAR are subject to amendment or repeal according to the provisions of the Basic Law
if they are found to have come into conflict with the Basic Law.

Appendix 1 The following ordinances and subordinate legislation in the existing laws of Hong Kong shall not be adopted as the laws
of HKSAR as contravening the Basic Law:

1. The Trustees (Hong Kong Government Securities) Ordinance (Chapter 77);

2. The Application of English Law Ordinance (Chapter 88);

3. The Foreign Marriage Ordinance (Chapter 180);

4. The Chinese Extradition Ordinance (Chapter 235);

5. The Colony Armorial Bearing (Protection) Ordinance (Chapter 315);

6. The Secretary of State for Defense (Succession to Property) Ordinance (Chapter 193);

7. The Royal Hong Kong Regiment Ordinance (Chapter 199);

8. The Compulsory Service Ordinance (Chapter 246);

9. The Army and Royal Air Force Legal Services Ordinance (Chapter 286);

10. The British Nationality (Miscellaneous Provisions) Ordinance (Chapter 186);

11. The British Nationality Act 1981 (Consequential Amendments) Ordinance (Chapter 373);

12. The Electoral Provisions Ordinance (Chapter 367);

13. The Legislative Council (Electoral Provisions) Ordinance (Chapter 381); and

14. The Boundary and Election Commission Ordinance (Chapter 432).

Appendix 2

Part of the articles in the following ordinances and subordinate legislation of the existing laws of Hong Kong shall not be adopted
as the laws of HKSAR as contravene the Basic Law.

1. The definition of Hong Kong permanent residents in Article two of the Immigration Ordinance (Chapter 115) and stipulations on Hong
Kong’s permanent residents in appendix one of the ordinance;

2. All the provisions made to implement the British Nationlity Ordinance in Hong Kong;

3. The provisions on elections contained in the Urban Council Ordinance (Chapter 101);

4. The provisions on elections contained in the Regional Council Ordinance (Chapter 385);

5. The provisions on elections contained in the District Board Ordinance (Chapter 366);

6. Auxiliary Sections A and C of the Corrupt and Illegal Practices Ordinance (Chapter 288);

7. The provisions on the explanation and purpose of implementation of the Bill of Rights Ordinance (Chapter 383) in part three of
Article Two; as well as provisions on its impact on previous laws in Article 3 and explanations of the meaning of later laws in Article
4;

8. The provisions in the Personal Data (Privacy) Ordinance (Chapter 486) which override other laws in part two of article three;

9. The major revisions made to the Societies Ordinance (Chapter 151) since July 17, 1992; and

10. The major changes to the Public Order Ordinance (Chapter 245) since July 27, 1995.

Appendix 3

The interpretation or application of the terms or expressions of the existing laws of Hong Kong adopted as the laws of HKSAR shall,
in general, observe the following principle of substitution:

1. Any article containing such terms of phrases as “Her Majesty the Queen”, “Royal Court”, “British Government” and “Secretary of
State” and the article is on the ownership of land of Hong Kong or involve the affairs due to the central government as provided
for in the Basic Law and the relations between the central government and HKSAR, the term or phrases shall be interpreted as the
central government or other organs in charge and, under other circumstances, as the government of HKSAR.

2. Any article that contains the terms as “The Queen, together with the Council” or “the Council” and, if the article concerns matters
about appeal, the terms or phrases shall be interpreted as the Court of the Last Resort of HKSAR, and under other circumstances,
the provisions of 1 shall apply.

3. The names of government organs or semi-official organs crowned with “Royal”, the word “Royal” shall be deleted and shall be interpreted
as corresponding organs of HKSAR.

4. The term “this colony” shall be interpreted as HKSAR. Any statement about the territory of Hong Kong should be interpreted according
to the map of HKSAR issued by the State Council before it is used.

5. Any “Supreme Court” and “High Court” and similar names and phrases shall be correspondingly interpreted as the high court and
the court of first instance of the high court.

6. Such post_titles or phrases as “Governor”, “Governor and Administrative Council”, “Department of Civil Affairs”, “Department of Justice”,
“First Judge Department”, “Department of Administration”, “Customs Superintendent” and “High Court” shall be interpreted correspondingly
as Chief Executive, Chief Executive together with the administrative council, secretary of administration, secretary of justice,
first judge of the court of last resort or first judge of the high court, secretary of civil affairs, secretary of political affairs,
commissioner of customs and excise and judge of the high court.

7. The post_titles or phrases of the legislative council, judicial organs or administrative organs and their personnel in the Chinese version
of the existing laws of Hong Kong shall be interpreted and applied according to the relevant provisions of the Basic Law.

8. Any post_title or phrase containing “People’s Republic of China” and “China” shall be interpreted as the People’s Republic of China
including Taiwan, Hong Kong and Macao. Any post_title or phrases mentioning mainland, Taiwan, Hong Kong and Macao separately shall be
interpreted as a component part of the People’s Republic of China.

9. Any article mentioning “foreign countries” or similar post_titles and phrases shall be interpreted as any other country or region other
than the People’s Republic of China or as “any other place other than HKSAR” according to the law or articles. Any articles mentioning
“foreigners” or similar post_titles or phrases shall be interpreted as any person other than a citizen of PRC.