Right of abode ruling
Vice-Premier Qian Qichen told US Secretary of State Madeleine Albright that the court row is at an end.
'Qian explained that the situation had in many ways been resolved,' Ms Albright said.
But she warned the United States would continue to observe developments in Hong Kong.
Washington was concerned that the status of Hong Kong was respected, judicial independence was preserved and 'that the various components of the Basic Law continue to be in effect'.