IN CONFIDENCE

1.4 The Governor is advised by an Executive Council (known as "EXCO") of 17 members, comprising:

(a)

(b)

4 ex-officio members (the Chief Secretary, the Commander

British Forces, the Financial Secretary and the

Attorney-General); and

12 other members appointed by the Governor, of whom 2 are Official (ie, members of the Hong Kong Government)

and 10 are Unofficial.

The Governor is required to consult EXCO on all major issues of public policy. He is not obliged to accept the aavice 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)

3 ex-officio members (the Chief Secretary, the

Financial Secretary and the Attorney-General); and

(b) a further 15 Official members and 29 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.

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IN CONFIDENCE

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