| CONFIDENTIAL

17.

The question of the possible conflict between the roles of

the Governor as head of the executive and as president of the Legislative Council is being actively debated in the media and by

academics and political commentators. It is doubtful whether the

issues involved are widely understood within the community. If the

present position is to be changed, it will be necessary to consider

carefully how to allocate the powers now exercised by the Governor

as president, which include powers exercised in the British

Parliament by the speaker, the Government

the Government of the day and the Houses

of Parliament themselves.

18.

There is no evidence that public interest in changes to the

composition of

of the Executive Council is any greater than

than in 1984.

If anything, there seems to be a greater recognition of the need to

maintain a strong executive capable of providing firm leadership and

efficient administration.

The Problem of Compatibility

19.

The Joint Declaration on the Question of Hong Kong and its

first Annex contain a number of general provisions about the

structure and operation of the future SAR government. Those most

relevant to the present paper are that the SAR's legislature will be

composed of local inhabitants and constituted by elections. (The

form of election is not stated.) The Joint Declaration also provides

that the policies which it

it states will be stipulated in the Basic

Law of the Hong Kong SAR.

20.

established a

The drafting of the Basic Law is now under way. Formally

speaking this is a matter for the Chinese Government. They have

Basic Law Drafting Committee (BLDC)

(BLDC) (including Hong

Kong members representing a broad spectrum of views) which has in

turn created sub-groups to study certain aspects of the draft law.

The Chinese have also set up a Basic Law Consultative Committee

(BLCC) in Hong Kong to reflect Hong Kong opinion to the BLDC.

21.

If we are to achieve a smooth transfer of government in 1997, as the Joint Declaration commits us to do, it is clear that

CONFIDENTIAL

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