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(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 7-8):

(v) the method of selection of the individual who would

bridge the change of

change of sovereignty in 1997, but not of the

first Deputy Governor, would be determined in the light of discussion with the Chinese (Annex paras 9-10).

Initial Action

20.

It is important that we should put our ideas to the Chinese soon, before their present thinking about the first Chief

the first Chief Executive

becomes firm and/or public. We have succeeded in establishing

useful informal dialogue with them on issues relating

constitutional

Basic Law.

a

to

development in Hong Kong and the drafting of the

In the course of this dialogue the Foreign and

Commonwealth Secretary has passed to his Chinese counterpart a

series of short papers which have helped to guide discussion.

During the State Visit to China the Foreign and Commonwealth

Secretary also explained to his counterpart that we were giving thought to the question of the Chief Executive: that we should avoid

a Chief Executive (Designate) waiting in the wings; and that we

would soon provide the Chinese with our detailed thoughts on this

issue.

21. It is proposed that a further short paper should be prepared

for transmission to the Chinese, introducing the

the concept of the creation of a government post for the Chief Executive (Designate) in advance of 1997. This would be passed to the Chinese Foreign

Minister under cover of a personal message from the Foreign and

Commonwealth Secretary. There will be opportunities for informal discussion of the paper when the British team for the Sino- British Joint Liaison Group (JLG) visits Peking for a meeting of the Group

in late November (although it is

is not intended that this should be

discussed in the JLG) and when the Governor of Hong Kong goes to

Peking on other business in early December.

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