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discussion of their own intentions for the period immediately after
1997.
17. These consequential issues include the propositions that:
(i) the post of Deputy Governor might be created in 1992. Α second term of office would span the change of sovereignty in
1997 (Annex paras 1-2):
(ii) the Chief Executive (Designate) would, perhaps in 1995, occupy the post of Deputy Governor, and would span the change of sovereignty in 1997 (Annex para 3):
(iii) powers would be progressively delegated, first to the Deputy Governor and then to the Chief Executive (Designate), although ultimate authority would remain with HMG in accordance with the provisions of the Joint Declaration Annex paras 4-7:
(iv) by 30 June 1997 the Chief Executive (Designate) should exercise all the powers which he would exercise when the Hong Kong SAR came into being. The remaining powers would be retained by the Governor (Annex paras 8-9):
(v) the method of selection of the Chief Executive (Designate), but not of the first Deputy Governor, would be determined in the light of discussion with the Chinese (Annex
paras 10-11).
Initial Action
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18. It is important that we should put our ideas to the Chinese soon, before their present unhelpful thinking about the first Chief Executive becomes firm and/or public. We have succeeded in establishing a useful informal dialogue with them on issues relating to constitutional development in Hong Kong and the drafting of the Basic Law. In the course of this dialogue the Foreign and Commonwealth Secretary has passed to his Chinese counterpart a