ARRANGEMENTS FOR THE TRANSITIONAL PERIOD
In order to ensure the effective implementation of the Joint Declaration of the Government of the People's Republic of China and the Government of the Republic of Portugal on the Question of Macao and create appropriate conditions for the transfer of government of Macao, the Government of the People's Republic of China and the Government of the Republic of Portugal have agreed to continue their friendly cooperation during the transitional period between the date of the entry into force of the Joint Declaration and 19 December 1999.
For this purpose, the Government of the People's Republic of China and the Government of the Republic of Portugal have agreed to set up a Sino-Portuguese Joint Liaison Group and a Sino-Portuguese Land Group in accordance with the provisions of paragraphs 3, 4 and 5 of the Joint Declaration.
I. SINO-PORTUGUESE JOINT GROUP
1. The Joint Group shall be an organ for liaison, consultation and exchange of information between the two Governments. It shall not interfere in the administration of Macao, nor shall it have any supervisory role over that administration.
2. The functions of the Joint Liaison Group shall be :
a) To conduct consultations on the implementation of the Joint Declaration and it's Annexes;
b) To exchange information and conduct consultations on matters relating to the transfer of government of Macao in 1999;
c) To conduct consultations on actions to be taken by the two Governments to enable the Macao Special Administrative Region to maintain and develop external economic, cultural and other relations;
d) To exchange information and conduct consultations on other subjects as may be agreed by the two sides.
Matters on which there is disagreement in the Joint Liaison Group shall be referred to the Governments for solution through consultations.
1. Each side shall designate a leader of ambassadorial rank and four other members of the group. Each side may also designate experts and supporting staff as required, whose number shall be determined through consultations.
2. The Joint Liaison Group shall be established on the entry into force of the Joint Declaration and shall work within three months after it's establishment. It shall meet in Beijing, Lisbon and Macao alternately in the first year of work. Thereafter, it shall have it's principal base in Macao. The Joint Liaison Group shall continue it's work until 1 January 2000.
3. Members, experts and supporting staff of the Joint Liaison Group shall enjoy diplomatic privileges and immunities of such privileges and immunities as are compatible with their status.
4. The working and organizational procedures of the Joint Liaison Group shall be agreed between the two sides through consultations within the guidelines laid down in this Annex. The work of the Joint Liaison Group shall remain confidential unless otherwise agreed.
II. SINO-PORTUGUESE LAND GROUP
1. The two Governments have agreed that, with effect from the entry into force of the Joint Declaration, land leases in Macao and related matters shall be dealt with the following provisions :
a) Leases of land granted previously by the Portuguese Macao Government that expire before 19 December 1999, except temporary leases and leases for special purposes, may, in accordance with the relevant laws and regulations currently in force, be extended for a period expiring not later than 19 December 2049, with a premium be collected.
b) From the entry into force of the Joint Declaration until 19 December 1999 and in accordance with the relevant laws of land may be granted by the Portuguese Macao Government for terms expiring not later than 19 December 2049, with a premium to be collected.
c) The total amount of new land, including fields reclaimed from the sea and undeveloped land, to be granted under Section II, paragraph 1 ( b ) of this Annex shall be limited to 20 hectares a year. The Land Group may, on the basis of the proposals of the Portuguese Macao Government, examine any change in the above-mentioned quota and make decisions accordingly.
d) From the entry into force of the Joint Declaration until 19 December 1999, all incomes obtained by the Portuguese Macao Government from granting new leases and renewing leases shall, after deduction of the average cost of land production, be shared equally between the Portuguese Macao Government and the future Government of the Macao Special Administrative Region. All the income so obtained from land by the Portuguese Macao Government, including the amount of the above-mentioned deduction, shall be used for financing land development and public works in Macao. The Macao Special Administrative Region Government's share of land income shall serve as a reserve fund of the Government of the Macao Special Administrative Region and shall be deposited in banks incorporated in Macao and, if necessary, may be used by the Portuguese Macao Government for land development and public works in Macao during the transitional period with the endorsement of the Chinese side.
2. The Sino-Portuguese Land Group shall be an organ for handling land leases in Macao and related matters on behalf of the two Government.
3. The functions of the Land Group shall be :
a) To conduct consultations on the implementation of Section II of this Annex ;
b) To monitor the amount and terms of land granted, divisions and use of income from land granted in accordance with the provisions of Section II, paragraph I of this Annex.
c) To examine proposals of the Portuguese Macao Government for drawing on the Macao Special Administration Region Government's share of income from land and to make recommendations to the Chinese side for decision.
d) Matters on which there is disagreement in the Land Group shall be referred to the two Governments for solution through consultations.
4. Each side shall designate three members of the Land Group. Each side may also designate experts and supporting staff as required, whose number shall be determined through consultations.
5. Upon the entry into force of the Joint Declaration, the Land Group shall be established and shall have it's principal base in Macao. The Land Group shall continue it's work until 19 December 1999.
6. Members, experts and supporting staff of the Land Group shall enjoy diplomatic privileges and immunities or other privileges and immunities or other privileges and immunities as are compatible with their status.
7. The working and organizational procedures of the Land Group shall be agreed between the two sides through consultations within the guideline laid down in this Annex.
(To be exchanged between the two sides)  
MEMORANDUM
In connection with the Joint Declaration of the Government of the People's Republic of China and the Government of the Republic of Portugal on the Question of Macao signed this days, the Government of the People's Republic of China declares :
The inhabitants in Macao who come under the provisions of the Nationality Law of the People's Republic of China, whether they are holders of the Portuguese travel or identity documents or not, have Chinese citizenship. Taking account of the historical background of Macao and it's realities, the competent authorities of the Government of the People's Republic of China will permit Chinese nationals in Macao previously holding Portuguese travel documents to continue to use these documents for traveling to other states and regions after the establishment of the Macao Special Administrative Region. The above-mentioned Chinese nationals will not be entitled to Portuguese consular protection in the Macao Special Administrative Region and other parts of the People's Republic of China.  
MEMORANDUM
In connection with the Joint Declaration of the Government of the Republic of Portugal and the Government of the People's Republic of China on the Question of Macao signed this day, the Government of the Republic of Portugal declares:
In conformity with the Portuguese legislation, the inhabitants in Macao who, having Portuguese citizenship, are holders of a Portuguese passport on 19 December 1999 may continue to use it after this date. No person may acquire Portuguese citizenship as from 20 December 1999 by virtue of his or her connection with Macao.