PANN

3.

THERE APPEARS TO BE NO BASIS THEREFORE POR LI HOU'S

SUGGESTION THAT A COMMON UNDERSTANDING HAD BEEN REACHED DURING

THE NEGOTIATIONS. COULD THERE BE ANY ELEMENT OF MISUNDERSTANDING

ON THE PART OF THE PRESS OR OF THE BLCC MEMBERS CONCERNED? IT

MIGHT BE WORTH CHECKING WITH MEMBERS OF THE DELEGATION, IF THERE

WERE ANY WHO ARE CONTACTS OF YOURS.

4.

WE SHOULD CONSIDER WHETHER LI'S DEFINITION OF

ACCOUNTABILITY WOULD IN FACT BE AN ACCEPTABLE ONE IF IT CAME TO

BE TRANSLATED INTO THE PROVISIONS OF THE BASIC LAW. THE POSITIVE

DEFINITION IN PARA 2(D) OF PIRST TUR, COMBINED WITH THE NEGATIVE ELEMENTS IN 2(A), SEEMS TO US GENERALLY ON THE RIGHT LINES,

SUBJECT TO THE FOLLOWING POINTS:

(A)

..

IP THE CHIEF EXECUTIVE DID NOT HAVE POWER TO DISSOLVE THE

LEGISLATURE UNDER ANY CIRCUMSTANCES THERE WOULD BE A

POSSIBILITY OF TOTAL DEADLOCK IN THE EVENT OP CONFLICT

BETWEEN THEM. IT IS NOT CLEAR HOW THIS WOULD BE

RESOLVED, EXCEPT BY THE INTERVENTION OF THE CPG. UNLESS

IT HAD THE POWER ITSELF TO DISSOLVE THE LEGISLATURE,

WHICH WOULD SEEM HIGHLY UNDESIRABLE, IT COULD ONLY REMOVE

THE CHIEF EXECUTIVE. THIS STATE OP AFFAIRS COULD BE AN

UNDESIRABLE WEAKENING OF THE CHIEF EXECUTIVE'S POSITION

IN ANY TRIAL OF STRENGTH WITH THE LEGISLATURE.

ALTERNATIVBLY THE CHIEF EXECUTIVE MIGHT LOOK TO PEKING TO

BACK HIM UP IN SOME UNCONSTITUTIONAL WAY. WE CONCLUDE

THEREFORE THAT IT WOULD BE DESIRABLE FOR THE CHIEF

EXECUTIVE TO HAVE THE POWER, IN CERTAIN CAREFULLY-DEPINED

CIRCUMSTANCES, HIMSELF TO DISSOLVE THE LEGISLATURE (AS

THE GOVERNOR CAN NOW). THE CONSIDERATIONS SET OUT IN OUR

2

CONFIDENTIAL

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