OTTAWA, September 19, 1996

OTTAWA, September 19, 1996 Excellency, I have the honour to refer to recent meetings between our two Governments on the maintenance by the Government of Canada of its Consulate General in the Hong Kong Special Administrative Region of the People's Republic of China and propose the following as an understanding between our two governments: 1. The Government of the People's Republic of China agrees to the maintenance by the Government of Canada of its Consulate General in the Hong Kong Special Administrative Region of the People's Republic of China.

2. The Government of the People's Republic of China takes note of the consular function which Canada performs in Macao, and agrees to the continuation of this function after the Government of the People's Republic of China resumes the exercise of sovereignty over Macao with effect from 20 December 1999.

3. The operations of the Canadian Consulate General in the Hong Kong Special Administrative Region are to be regulated by the Vienna Convention on Consular Relations of 24 April 1963. Consular matters are to be handled on the basis of equality and mutual benefit and in a friendly and cooperative spirit.

I would be grateful for your Excellency's confirmation that the above principles meet with the approval of the Government of the People's Republic of China and serves as the basis for the conduct of consular relations between our two Governments in regard to the Hong Kong Special Administrative Region. The present Note and your Excellency's affirmative Note in reply constitute an understanding between our two Governments coming into effect on 1 July 1997.

I avail myself of this opportunity to renew to your Excellency the assurances of my highest consideration.

Lloyd Axworthy Minister of Foreign Affairs of Canada His Excellency Qian Qichen Vice-Premier and Minister of Foreign Affairs of the People's Republic of China he Government of the People's Republic of China resumes the exercise of sovereignty over Macao with effect from 20 December 1999.

3. The operations of the Canadian Consulate General in the Hong Kong Special Administrative Region are to be regulated by the Vienna Convention on Consular Relations of 24 April 1963. Consular matters are to be handled on the basis of equality and mutual benefit and in a friendly and cooperative spirit.

I would be grateful for your Excellency's confirmation that the above principles meet with the approval of the Government of the People's Republic of China and serves as the basis for the conduct of consular relations between our two Governments in regard to the Hong Kong Special Administrative Region. The present Note and your Excellency's affirmative Note in reply constitute an understanding between our two Governments coming into effect on 1 July 1997.

I avail myself of this opportunity to renew to your Excellency the assurances of my highest consideration.

Lloyd Axworthy Minister of Foreign Affairs of Canada His Excellency Qian Qichen Vice-Premier and Minister of Foreign Affairs of the People's Republic of China