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PUBLICLY ACCUSED US OF QUOTE DEVIATIONS FROM THE JOINT

DECLARATION UNQUOTE, A STATEMENT WHICH SERIOUSLY JOLTED

CONFIDENCE. ALTHOUGH WE HAVE NOW DONE MUCH TO RE-ESTABLISH A

RELATIONSHIP OF MUTUAL TRUST OVER THESE ISSUES, CHINESE NERVOUSNESS REMAINS.

24.

THE CHINESE CONCERNS APPEAR TO BE TWOFOLD. THE CHINESE

DO NOT WANT US TO ANNOUNCE DECISIONS ABOUT MAJOR CONSTITUTIONAL

CHANGE (IN PARTICULAR OVER DIRECT ELECTIONE TO THE LEGISLATIVE

COUNCIL) IN ADVANCE OF THE PROMULGATION OF THE BASIC LAW IN 1990.

THEY FEAR THAT THE IMPRESSION COULD BE GIVEN THAT IMPORTANT

PROVISIONS IN THE BASIC LAW HAD BEEN IMPOSED ON THEM BY OUR

PRE-EMPTIVE ACTION THROUGH THE REVIEW. THEY WANT TO AVOID A

CHOICE BETWEEN MAKING STIPULATIONS IN THE BASIC LAW WHICH ARE IN

ACTUAL OR POTENTIAL CONFLICT WITH THE PREVAILING CONSTITUTIONAL

& TRUCTURE IN HONG KONG AND INCORPORATING STIPULATIONS WHICH THEY

DO NOT DESIRE. ON AT LEAST ONE OCCASION THEY HAVE SAID

EXPLICITLY THAT, IF FACED WITH SUCH A CHOICE, THEY WOULD GO FOR

THE FORMER OPTION. ON THE SUBSTANCE, THEY FEAR INSTABILITY AND

THE DIVISIVE EFFECTS OF PARTY POLITICE.

25.

THE CHINESE HAVE LONG HAD STRONG MISGIVINGS ABOUT DIRECT

ELECTIONS (ALTHOUGH, AS NOTED BELOW, THEY MAINTAIN TO US THAT

THEY ARE NOT OPPOSED TO THEM IN PRINCIPLE). THEIR CONCERN ABOUT

THE POSSIBLE EFFECTS OF DIRECT ELECTIONS APPEARS TO HAVE GROWN IN

THE PAST FEW MONTHS, PROBABLY AS A RESULT OF DIVISIONE AND

CONFRONTATION IN THE LEGISLATIVE COUNCIL OVER CONSTRUCTION OF THE

DAYA BAY NUCLEAR PLANT IN GUANGDONG PROVINCE OF CHINA, NEAR HONG

KONG. HONG KONG BUSINESS LEADERS IN CONTACT WITH THE CHINESE

TEND TO OPPOSE DIRECT ELECTIONS AND TO TELL THEM SO. MOREOVER,

THE SUB-COMMITTEE OF THE BASIC LAW DRAFTING COMMITTEE DRAFTING

THE RELEVANT SECTION OF THE BASIC LAW AT PRESENT HAS A MAJORITY

OF HONG KONG MEMBERS AGAINST DIRECT ELECTIONS. (CHINESE MEMBERS

DO NOT FORMALLY EXPRESS AN OPINION, BUT MAY BE ASSUMED TO REFLECT THE VIEW OF THE CHINESE GOVERNMENT.)

EXCHANGES WITH THE CHINESE

24.

IN ORDER TO OVERCOME THIS MISTRUST AND LESSEN THE RISK OF

CONFLICT OVER THE 1987 REVIEW AND THE BASIC LAW WE HAVE SOUGHT

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