Laws of the People's Republic of China

    1. The first Government and the first Legislative Council of the Hong Kong
Special Administrative Region shall be formed in accordance with the
principles of state sovereignty and smooth transition.

    2. Within the year 1996, the National People's Congress shall establish a
Preparatory Committee for the Hong Kong Special Administrative Region, which
shall be responsible for preparing the establishment of the Region and shall
prescribe the specific method for forming the first Government and the first
Legislative Council in accordance with this Decision. The Preparatory
Committee shall be composed of mainland members and of Hong Kong members who
shall constitute not less than 50 per cent of its membership. Its chairman and
members shall be appointed by the Standing Committee of the National People's
Congress.

    3. The Preparatory Committee for the Hong Kong Special Administrative
Region shall be responsible for preparing the establishment of the Selection
Committee for the First Government of the Hong Kong Special Administrative
Region (the "Selection Committee").

    The Selection Committee shall be composed entirely of permanent residents
of Hong Kong and must be broadly representative. It shall include Hong Kong
deputies to the National People's Congress, representatives of Hong Kong
members of thc National Committee of the Chinese People's Political
Consultative Conference, persons with practical experience who have served in
Hong Kong's executive, legislative and advisory organs prior to the
establishment of the Hong Kong Special Administrative Region, and persons
representative of various strata and sectors of society.

    The Selection Committee shall be composed of 400 members in the following
proportions. Industrial, commercial and financial sectors 25 per cent

    The professions 25 per cent

    Labour, grass-roots, religious and other sectors 25 per cent.

    Former political figures, Hong Kong deputies to the National People's
Congress, and representatives of Hong Kong members of the National Committee
of the Chinese People's Political Consultative Conference 25 per cent.

    4. The Selection Committee shall recommend the candidate for the first
Chief Executive through local consultations or through nomination and election
after consultations, and report the recommended candidate to the Central
People's Government for appointment. The term of office of the first Chief
Executive shall be the same as the regular term.

    5. The Chief Executive of the Hong Kong Special Administrative Region
shall be responsible for preparing the formation of the first Government of
the Region in accordance with this Law.

    6. The first Legisltive Council of the Hong Kong Special Administrative
Region shall be composed of 60 members, with 20 members returned by
geographical constituencies through direct elections, 10 members returned by
an election committee, and 30 members returned by functional constituencies.
If the composition of the last Hong Kong Legislative Council before the
establishment of the Hong Kong Special Administrative Region is in conformity
with the relevant provisions of this Decision and the Basic Law of the Hong
Kong Special Administrative Region, those of its members who uphold the Basic
Law of the Hong Kong Special Administrative Region of the People's Republic of
China and pledge allegiance to the Hong Kong Special Administrative Region of
the People's Republic of China, and who meet the requirements set forth in the
Basic Law of the Region may, upon confirmation by the Preparatory Committee,
become members of the first Legislative Council of the Region. The term of
office of members of the first Legislative Council of the Hong Kong Special
Administrative Region shall be two years.