ON CONF POD

SOURCE IS QUOTED AS SAYING THAT

HAD BEL TO, LANDED BY THE BRITISH. THE CHINESE SIDE HAD USED

VANIETY OF SEMI-OFFICIAL CHANNELS TO SPREAD THEIR IDEAS ON THE AECOVERY OF SOVEREIGNTY AND ADMINISTRATION RIGHTS: BUT THERE WERE

ONLY THREE PEOPLE WHO SPOKE OFFICIALLY FOR THE STATE, LI XIANNIAN,

DENG XIAOPING AND ZHAO ZIYANG.

4. THE SOURCE WAS ALSO QUOTED AS DESCRIBING IN SOME DETAIL THE PROBLEMS OF IMPLEMENTING THE SELF-RULE FORMULA. THE FOUR

POINTS OF MOST CONCERN WERE:

(A) HOW SHOULD THE HEAD OF GOVERNMENT BE SELECTED.

(B) WHAT WOULD BE THE LEGAL STATUS OF THE HONG KONG

SPECIAL ADMINISTRATIVE REGION.

(C) WHAT WOULD BE THE FUTURE ROLE OF LEFTISTS IN HONG KONG.

(D) HONG KONG'S FUTURE INTERNATIONAL RELATIONS.

THE SOURCE WAS ALSO QUOTED AS REFERRING TO REPORTS THAT JI PENGFE!

HEAD OF THE HONG KONG AND MACAO OFFICE, HAD TOLD HONG KONG URBAN

COUNCILLOR DENNY HUANG THAT THE HEAD OF GOVERNMENT WOULD BE CHOSEN

THROUGH A CONSULTATIVE PROCESS. ACCORDING TO THE SOURCE, NO FIRM

POLICY DECISION ON THIS MATTER HAD YET BEEN TAKEN. THREE

ALTERNATIVES WERE BEING CONSIDERED BY THE CHINESE SIDE. A DECISION

ON WHICH WAS TO BE IMPLEMENTED WOULD DEPEND ON HOW COOPERATIVE

THE BRITISH PROVED. IF THE BRITISH DID NOT COOPERATE ENOUGH,

AND THE LEVEL OF DEMOCRATIC CONSCIOUSNESS ON THE PART OF THE

HONG KONG PEOPLE WAS INSUFFICIENT, THE EXECUTIVE AND LEGISLATIVE

COUNCILS WOULD BE MERGED AND WOULD IN PART BE ELECTED DIRECTLY.

THE MANNER IN WHICH THE HEAD OF GOVERNMENT WOULD BE CHOSEN WOULD

DEPEND ON THE CURRENT SITUATION. IF BRITAIN COOPERATED AND

DEVELOPED DEMOCRATIC PROCEDURES IN HONG KONG, A FULLY ELECTIVE FORM

OF GOVERNMENT WOULD BE INTRODUCED. IF THE BRITISH PRETENDED TO

COOPERATE BUT IN PRACTICE DRAGGED THEIR FEET, THEN A CONSULTATIVE PROCESS AS DESCRIBED BY JI PENGFE! WOULD BE USED. THE SOURCE

WAS ALSO QUOTED AS SAYING THAT IT WAS INCORRECT TO REFER TO ANY

LEGAL GUARANTEES IF THE HONG KONG SAR HAS A MINI CONSTITUTION''

IF WAS MORE CORRECT TO SPEAK OF DETAILED PROVISIONS FOR SPECIAL

ADMINISTRATIVE REGIONS.

COMMENT

5. ALL THE DETAILS IN THE ARTICLE ARE ATTRIBUTED TO THE

ONE SOURCE (WIDE ANGLE SOMETIMES BLURS THE DISTINCTION

BETWEEN ITS OWN SPECULATION AND INFORMATION DERIVED FROM SPECIFIC

SOURCES). THE PASSAGES ON THE PROGRESS IN THE NEGOTIATIONS READ LIKE A REASONABLY INTELLIGENT ATTEMPT AT RECONSTRUCTION BY SOMEONE WHO HAS PAID CLOSE ATTENTION TO, AND TO A LARGE EXTENT BELIEVES IN, THE CHINESE VERSION OF EVENTS AS CONVEYED THROUGH

THE PROPAGANDA CAMPAIGN.

6. HKD REGISTRY PLEASE PASS TO FED.

SIGNED: R P MARGOLIS

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