CONFIDENTIAL

Introduction of Direct Elections

7.

proposals

contained in the Green Paper

People

Public comment on

published in Hong Kong in July showed little evidence of support for

introduction of direct elections in immediate future.

recognise need to ensure that Hong Kong's stability and prosperity

are not put at risk by introducing too many constitutional changes too rapidly. Further consideration will be given to question in

1987 review.

TS Lo resignation from EXCO

8.

Mr T S Lo resigned from the Executive and Legislative Councils

with effect from 12 February. This is a personal matter for Mr Lo.

[IF IT IS SUGGESTED THAT THE RESIGNATION WAS IN PROTEST AT THE

AGREEMENT]

I am not aware of any criticism of the agreement by Mr Lo.

[ IF ASKED ABOUT APPOINTMENT OF A SUCCESSOR]

This is a matter for the Governor.

Will agreement be registered at the UN?

9. Yes. We shall register it at the UN in accordance with normal international practice.

Pensions

10.

The agreement provides that the SAR Government will pay all pensions, gratuities and other

other benefits

benefits due to public servants and

dependants including those who have retired before 1 July 1997.

Conscription into PLA

11.

be.

With one billion

The agreement does not refer to the

the question of conscription.

This i s not to stay that there will be conscription. Chinese

Government have not suggested that there would

Chinese people, can see little need to conscript from 5 million Hong

Kong people.

CONFIDENTIAL

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