GPS 800

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 665

OF 04074OZ MARCH 86

INFO IMPEDIATE PEKING

CONFIDENTIAL

TOP COPY

HKKO!!!!

RECEIVED IN SHAISTRY

- 5 MAR 1986

INDEX

PA

tion Fadden

HONG KONG AGREEMENT : PESTRICTED : NCNA SPRING BANQUET

FOR UMELCO MEMBERS.

NCNA'S SPRING BANQUET FOR UMELCO MEMBERS LAST NIGHT WAS GIVEN

PROMINENT COVERAGE IN MANY LOCAL PAPERS TODAY. MOST PAPERS

HIGHLIGHTED SIR S.Y, CHUNG'S SPEECH AT THE BANQUET CALLING

FOR RESPECT FOR AND PECOGNITION OF THE STATUS OF UMELCO BY

PEKING AND HIS ASSERTION THAT REPRESENTATIVE GOVERNMENT

IMPORTANT PART OF THE JOINT DECLARATION.

WAS AN

2. SIR S.Y. CHUNG MADE THE FOLLOWING MAIN POINTS IN HIS SPEECH:

(A) SEVERAL IMPORTANT CHANGES TO THE LEGISLATIVE COUNCIL HAVE OCCURRED IN THE PAST FEW MONTHS. THESE INCLUDE THE ENTRY INTO

LEGCO OF A LARGE NUMBER OF ELECTED LEGISLATIVE COUNCILLORS:

THAT THE UNOFFICIALS NOW FORM A MAJORITY OF LEGCO: AND THE

MOVING OF THE LEGCO CHAMBER AND UMELCO OFFICE TO THE HISTORIC

BUILDING AT STATUE SQUAPE. THESE WERE SIGNIFICANT STEPS IN THE DEVELOPMENT TOWARDS REPRESENTATIVE GOVERNMENT, WHICH IS AN IMPORTANT PART OF THE JOINT DECLARATION.

(B) ALTHOUGH THE DETAILED STRUCTURE OF THE SAR GOVERNMENT HAD YET TO BE DEFINED IN THE BASIC LAW, THE CHINESE GOVERNMENT HAD ALREADY COMMITTED ITSELF TO SOME IMPORTANT PRINCIPLES IN THE

JOINT DECLARATION. TWO OF THESE PRINCIPLES WERE:

THE LEGISLATURE OF THE HK SAR SHOULD BE CONSTITUTED BY ELECTION, AND THAT THE EXECUTIVE AUTHORITIES SHOULD BE ACCOUNTABLE TO THE

LEGISLATURE. ALTHOUGH THE LEGISLATIVE COUNCIL MIGHT DIFFER IN NAME AND IN COMPOSITION FROM THE SAP'S LEGISLATURE, IT COULD NOT PE DENIED THAT LEGCO AND UMELCO WERE PART AND PARCEL OF THE CUPPENT STRUCTURE OF THE HONG KONG GOVERNMENT WHICH, IN ACCORDANCE WITH PARAGPAPH 4 OF THE JOINT DECLARATION, WOULD ACT ON BEHALF OF THE UK GOVERNMENT FOR THE ADMINISTRATION OF HONG KONG.

(C) (THANKING XU JIATUN FOR THE RECEPTION) THIS GESTURE OF MUTUAL PECOGNITION AND RESPECT WOULD CONTRIBUTE MUCH TO THE COMMON OBJECTIVE OF MAINTAINING HONG KONG'S ECONOMIC PROSPERITY AND SOCIAL STABILITY. THUS, HE HOPED THAT THEPE WOULD FE FUTURE OPPORTUNITIES TO MEET AND EXCHANGE VIEWS ON MATTERS OF MUTUAL CONCERN WITH VISITING CHINESE OFFICIALS.

CONFIDENTIAL

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