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CONFIDENTIAL

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LIFE PEERAGES

1.

In his minute of 28 November Mr Youde suggested that during

the Prime Minister's visit Dr S Y Cheung might revert to his

proposal for life peerages for Hong Kong. He therefore asked

us to give some further thought to the proposal. Although the

Prime Minister's visit is now off for the present, Mr Youde may

like to know the outcome of our researches. They have included

consultation with the department's Legal Adviser, Gibraltar and

General Department, Far Eastern Department and Protocol and

Conference Department.

2. The Life Feerage Act, 1958, makes provision to confer on any

person a peerage for life. The power to create peers is vested

in Her Majesty. Where titles are conferred for parliamentary or

other public services, it is usual for the Crown to be guided

largely by the advice of the Prime Minister. Our Legal Adviser's

understanding is that each incoming Prime Minister appoints three

Privy Councillors to act as a Political Honours Scrutiny

Committee to consider and to report to him on the character and

antecedents of persons on whom it is proposed to confer honours.

In the Legal Adviser's view it would be inappropriate for the

Crown to be advised on the creation of peers other than by UK

Ministers. There could therefore be no question of direct

nominations to Her Majesty from the Government of Hong Kong.

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CONFIDENTIAL

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