SECRET

2.2. g

J.

Powers of the Legislature

22.

The present Legislative Council has the power to

legislate, debate, question, and vote funds as described in

Paper I.

23.

Under Section II of Annex I to the Joint Declaration

legislative power of the Hong Kong SAR is to be vested in

the Legislature which may "on its own authority enact laws

in accordance with the

the provisions of the Basic Law and legal procedures, and report them to the Standing Committee

of the NPC for the record". The Legislature will also have the power to amend existing law.

24.

Since the Executive is to

Legislature (Joint Declaration,

be "accountable" to the

Annex I, Section I) the

the Executive on all

Legislature will

will need the right to debate all issues of

policy and to pose questions to matters of policy and administration.

25.

Under the Joint Declaration the Legislature will

continue to approve taxation and public expenditure and the Executive will be accountable to it for all public

expenditure: the existing system of auditing public

accounts is also to be maintained (Joint Declaration,

Section V of Annex I).

26.

be little problem

over

There should therefore convergence between the powers of the existing Legislative Council and the Legislature of the SAR.

27. The Governor has the power to dissolve the Legislative Council. Provision will need to be made for the situation in which the policies endorsed by the Chief Executive, and his Executive on major matters fail to receive the support of the legislature. There are a number of options:

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