IN CONFIDENCE

1.4

The Governor is advised by an Executive Council (known as

"EXCO") of 15 members, comprising:

(a) 5 ex-officio members (the Chief Secretary, the Commander

British Forces, the Financial Secretary, the Attorney-

General and the Secretary for Home Affairs); and

(b)

10 other members appointed by the Governor who may be

either Official (ie, members of the Hong Kong

Government) or Unofficial.

The Governor is required to consult EXCO on all major issues of

public policy. He is not obliged to accept the advice he receives,

but if he does not he must report his reasons to HMG.

1.5

The Governor legislates with the advice and consent of the

Legislative Council (known as "LEGCO") comprising:

(a)

4 ex-officio members (the Chief Secretary, the

Financial Secretary, the Attorney-General and the

Secretary for Home Affairs); and

(b) a further 18 Official members and 27 Unofficial members

nominated by the Governor.

The Governor has not acted against the views of LEGCO for many

years. In the unlikely event that he should need to do so, he can

appoint, on instructions from the Foreign and Commonwealth

Secretary, extra Official members to the Council. The Finance

Committee of LEGCO, on which all Unofficial members sit, considers

all proposals involving expenditure from public funds. A Public Accounts Committee considers the annual report of the Director of

Audit and reports to the Governor.

3

IN CONFIDENCE

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